FINANCE: Medway NHS Foundation Trust’s plan for 2012-15 says it expects to end the current financial year in deficit.
The FT’s annual plan covers the three year period starting with 2012-13 and ending with the financial year 2014-15. It is focussed on 2012-13, but with “summarised” information for the following two financial years.
The plan states: “The trust is forecasting a £1m deficit for the 2012-13 financial year, after restructuring costs. This financial position improves to a £0.9m surplus in 2013-14, before further improving to a surplus of £1.6m by 2014-15.”
The plan highlights that the trust’s income base is “under pressure both from the deflation of the national tariff price and also from commissioner’s intentions to manage demand away from the trust and into primary and community based services”.
The FT said it expected tariff deflation to remove around £3.5m of income each financial year, while it would lose between £1.1m and £1.7m over the course of the next three financial years from intentions to move demand away from it.
The papers state: “In order to respond to both the impact of the assumed reduction in its income base, and the need to improve its underlying financial performance the trust is planning to deliver significant savings programmes in each of the three years.
“This will reduce expenditure in both pay and non-pay and supports the movement back into surplus. The savings plans are for £15.6m (6.9 per cent) in 2012-13, £11.9m (5.5 per cent) in 2013-14 and £11.3m (5.4 per cent) in 2014-15.”
Council of Governors board papers (attached, right)
7 June 2012