St Helen’s and Knowsley cuts income forecast

The downward revision of the forecast included provisions for “risks associated with” Commissioning for Quality and Innovation (CQUIN) payments of around £300,000, and an expected £400,000 reduction in income as a result of the November strike. “Management action to mitigate these risks are critical as in the worst case their impact could be over £1m,” the report stated.

Offsetting these expected losses was an expected £400,000 of “winter pressure income” agreed with commissioners to open additional capacity over the winter period.

At month 7 the Trust still had not received confirmation it would receive £6m of “PFI support”, but the support was still assumed in its forecast income.

The report continued: “With regard to cash flow, providing that [cost improvement programmes] are delivered as planned and that all anticipated financial support for the PFI is forthcoming in a timely fashion, the Trust will be able to manage its cash as per plan. If the Trust does not receive its £6m PFI cash support in December 2011 then it is at risk of failing its payment duties as exceptional cash management actions will be required.”