FINANCE: Northern, Eastern and Western Devon Clinical Commissioning Group is forecasting the largest cumulative deficit of any CCG to date.
The CCG ended 2014-15 with a cumulative deficit of £38.9m, but plans for this to increase to £78.9m by the end of 2015-16, according to its June board papers.
NEW Devon is the largest CCG in the country, with a total budget of £1.08bn this year.
Its financial troubles led it to propose a range of service cuts last year, including restricting access to smokers and morbidly obese patients for some procedures.
However, a political backlash caused it to drop the controversial plans shortly after announcing them.
The CCG finished 2014-15 with an in-year deficit of £24.3m – £9.6m more than planned.
Its £38.9m cumulative deficit is already one of the largest recorded by any CCG, just behind Bedfordshire CCG, which last month reported a cumulative deficit of £43.2m.
However, NEW Devon plans to end 2015-16 with an in-year deficit of £40m, which would cause its cumulative deficit to balloon to £78.9m.
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Its forecast cumulative deficit is bigger than Bedfordshire’s, which is currently planning for an in-year deficit of £20m in 2015-16. It would see the CCG’s cumulative deficit reach £63.2m.
To match its plan, NEW Devon has to deliver £37.1m of efficiency savings this year.
Its board papers state: “The financial plan contains a higher level of risk than previous submissions and will require full delivery of [quality, innovation, productivity and prevention programme] plans and adherence to budgeted contract values.”
It adds that the plans are “realistic” but concedes “there is little margin to contain any material adverse economic events”.