FINANCE: Serious underachievement of planned savings, combined with expenditure pressures and lower than forecast income levels, have led to significant in-year financial pressures.

The trust is implementing a range of new savings measures and has held discussions with the West Mercia PCT cluster regarding the expected full year contract value.

Discussions with the cluster and NHS Midlands and East have also considered the non recurrent costs being incurred by the trust to implement changes to patient pathways across the health economy.

A total of £6m of in year support has now been provided to the trust to fund these transformation changes and other in year cost pressures.

Whilst risks to the trust’s outturn position remain, the SHA is assured that by year end the joint trust and PCT cluster actions will resolve the outstanding risks to ensure the delivery of breakeven.

The SHA was due to meet the trust on 19 March to review its performance against the milestones for becoming a foundation trust. This meeting will also review the failure of the trust to deliver its 2011-12 financial plan and the actions being taken to improve the underlying financial position.

Source

NHS Midlands and East

Source date

22 March 2012

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