FINANCE: Birmingham’s PCTs face a £44m shortfall in their QIPP plans in 2011-12 and an underlying recurrent deficit of at least £53m in 2012-13.
The cluster board has been considering this position and actions required to bring the overall position back into balance. It is very likely therefore that each PCT within the Cluster will be required to make additional savings. If the £44m is shared on the basis of allocations, this would mean HoB being required to secure an extra £11m in savings.
In 2011-12 there is a QIPP plan of £50.6m which equates to 2.1 per cent of the overall portfolio across the four commissioners: Heart of Birmingham, South Birmingham, Solihull and Birmingham East and North.
There is a high level of assumed risk against QIPP delivery of £18.7m, therefore assuming that a QIPP programme of £31.9m will be delivered. This equates to only 1.3 per cent across the portfolio and therefore is a key contributor to the current gap.
The QIPP analysis against key expenditure headings shows that the majority of savings have been assumed from acute services and corporate budgets with other areas making small contributions.
Further to the cluster decision to carry out a review across each PCT to ensure further disinvestment in February, a value of £6m has been currently disinvested in across the cluster. This is against the back drop of considerable disinvestment in some PCTs in previous financial years.
Key movements from agreed board plans in March are:
- Assessment of QIPP risk and reductions in QIPP plans of £27m
- Cost pressures and contractual changes of £14m
- Release of areas of flexibility £15m
- A recurrent QIPP requirement of circa an additional £80million will be required in 2012-13 based upon the assumption that the 2011-12 financial plan is managed on a non recurrent basis. This is subject to future planning guidance for key areas such as future top slices.
NHS Heart of Birmingham, finance report