FINANCE: Northumberland CCG has a £17m potential gap between its baseline allocation and recurring expenditure.
Its governing body was told that there was ‘extremely limited flexibility to manage pressures’ but the local area team had ‘challenge us to do more to deliver QIPP savings’ to prove it could live within its resource allocation. It was not able to deliver a 2 per cent non-recurring headroom and can only deliver a 0.25 per cent surplus.
The CCG has identified a number of risk areas which it plans to mitigate including continuing healthcare where spending has increased by £7m year-on-year for the last two years and Northumberland has some of the highest spends per head in the country. The CCG is working with the local authority to manage this.
Risks sharing arrangements have also been put into place with the local acute provider covering elective admissions and readmissions.