FINANCE: The primary care trust has identified forecast overspends of £6.8m for 2011-12, the latest NHS Greater Manchester finance report states.
The PCT cluster’s report states that the main forecast pressures are overspends of £2.7m for acute contracts, £858,000 on mental health “pool” contracts, £1.9m on specialist and collaboratively commissioned services, and a £1.6m from the delay in delivery of cost improvement programmes.
It adds: “There are ongoing negotiations between NHS Manchester and Manchester City Council regarding the settlement of mental health non-secure over-performance for 2009-10, the 2010-11 mental health pool contribution and pooling resources for 2011-12.”
And it states: “NHS Manchester set an initial [quality, innovation, productivity and prevention savings] target of £20.2m and then added a further 50 per cent to allow for slippage on schemes, optimism bias, and to provide a potential contingency for any deterioration in the underlying financial position.
“To date, it is evident that £7.9m of this contingency will be required to offset forecast overspends and ensure the delivery of the planned surplus.
“Detailed plans have been drawn up by consortia leads and other budget holders to address £26m of the revised £30m target and are currently working on proposals to achieve the balance.
“The agreement of block contracts for urgent care will deliver significant savings of over £8m against potential non elective growth; however these block contracts are in place for one year only and the PCT is working to ensure that QIPP plans deliver recurrent savings. The highest risk areas are in schemes to save costs in relation to secure mental health and running costs.”