FINANCE: Homerton hospital was predicting a £1.7m surplus in month ten, slightly behind plan, documents released to HSJ show.

Board papers for the foundation trust’s February board meeting, released under the Freedom of Information Act, show that the hospital had a year-to-date surplus of £1.18m at the end of January, £54,000 better than expected.

However, the forecast for the end of 2010-11 was for the trust to miss its £1.79m surplus target by £34,000.

The year-end position assumed a reduction as a result of commissioners’ claims management, and an expected drop in Commissioning for Quality and Innovation income.

Although 75 per cent of CQUIN indicators had been met, this represented only a small portion of the potential income from the programme.

During January, activity and income continued above plan in accident and emergency, outpatients, and elective care, mainly in trauma, and orthopaedics and pain management.

Non-elective income was below plan that month as a result of an estimated £125,000 loss on readmissions.

Claims management negotiations with commissioners were identified as an area of risk. Talks were ongoing, but the trust’s finance report said the settlement could result in lower-than-forecast income levels.

The papers said: “Pressure remains on clinical expenditure budgets across both pay and non pay categories, and measures to contain these over the remainder of the financial year are being agreed with budget holders.”