FINANCE: Work to identify a sustainable provider model on the Isle of Wight is “critical” once the primary care trust is wound up and the commissioner will no longer be able to subsidise the provider arm.

NHS Isle of Wight, which runs acute, mental health, prison, mental health, ambulance and community services on the island, has been given special permission by the Department of Health not to separate its provider and commissioner under the transforming community services programme but to remain as one organisation until 2013 due to its unique situation.

However, a report to the board reveals despite the PCT’s “history of robust financial performance” the provider arm regularly finishes the year in deficit while the commissioning arm is in surplus.

The report states: “As in prior years, a surplus for the commissioning function of £19.0m will off-set a deficit for the provider of £16.5m. Post business separation, this situation will no longer be able to continue. The current work to identify a sustainable provider model… is therefore critical.”

The PCTs five year plan shows the provider starting position of a deficit of £18.9m falling to £8.6m, while the commissioner’s starting position is a surplus of £19.3m falling to £6.1m.