FINANCE: The primary care trust had fallen slightly behind plan after the first two months of the financial year, but did report a surplus.
At the end of month two, May, the overall performance for NHS Medway was a surplus of £0.189m compared to a planned surplus of £0.749m, according to a finance report published by the Kent and Medway PCT cluster.
The PCT therefore recorded a shortfall of £0.560m, though it highlights that its year-to-date position does not include the use of contingencies.
NHS Medway has agreed a target surplus for the year with NHS South East Coast of £4.494m. It is currently rated green for the three statutory duties it has to meet: revenue resource limit, capital resource limit and cash limit.
The report stated: “The financial position after two months is an underspending of £189,000; however, in order to achieve the target surplus, the underspend should have been £749,000, thus the PCT is not achieving its target surplus by £560,000.
“The main factor leading to this position was an overspend at Medway NHS Foundation Trust arising from an underachievement against the savings target.
It added: “The contract agreed with Medway NHS Foundation Trust incorporated savings of £2.749m for the year, and these have not yet been achieved, leading to an overspend of £458,000 at this trust.
“Expenditure on anti-vascular endothelial growth factor agents used to treat diabetic patients is lower than budgeted leading to a small underspending on non-contract expenditure at Maidstone and Tunbridge Wells NHS Trust.”
Cluster finance report (see attached, right)
20 July 2011