FINANCE: Potential underachievement of a larged planned saving on workforce costs poses a financial risk to Leeds Teaching Hospitals NHS Trust.
The trust’s July finance paper indicates the programme aims to save about £24m in total. It says: “The majority of the workforce savings are scheduled to start in October 2012 and involve a complex set of changes to staffing numbers and terms and conditions.
“By their nature these changes have significant risk. The currently assessed value of this financial risk is a maximum of 10 per cent of planned savings (£2.4m).”
Meanwhile, the trust reports it was behind its overall financial plan – for an end of year surplus of £10.1m – by £2.4m at the end of June. However, the adverse variance is “overstated by approximately £0.7m due to a number of timing issues in respect of non-recurrent funding from NHS Leeds and minor errors”.
And the report says: “We are now carrying out a detailed assessment of potential financial risk after completing quarter one reporting. We will then be in a position to assess our ability to deliver the planned £10.1m surplus.”