FINANCE: Southern Derbyshire Clinical Commissioning Group has had to raid its reserves in order to cover the costs of implementing its main acute trust’s enhanced tariff option, HSJ can reveal.
While the CCG received £1.8m from NHS England to contribute to the costs of implementing Derby Hospitals Foundation Trust’s tariff agreement for 2015-16, the actual bill for implementation is £4.2m.
The CCG has said it will aim to plug the £2.4m shortfall with funding from its own risk reserves, board documents say.
The CCG forecast its risk reserves to be worth £6.3m for the current financial year, as of 1 April.
In order to mitigate against further financial risks, commissioners have said they intend to incorporate incentives into the FT’s contract to limit further in-year financial demands on the group.
While the CCG finished 2013-14 with a £6m underspend, it has experienced an increase in in-year cost pressures, from £4m in 2012-13 to £10m in 2014-15.
The CCG has yet to sign off its 2015-16 contract with Derby Hospitals.
Wrong commissioners charged for premises
South Derbyshire CCG has said Community Health Partnership, a body which sub-leases premises used to provide primary and community care services commissioned by the group, has incorrectly charged other commissioners for its services.
It estimates that to correct the error, the CCG would need to pay out a further £446,000 for 2014-15, board documents state.
CCG board documents from last week state: “Community Health Partnership recharges are still being paid on an estimated basis, although our costs are likely to increase beyond plan because CHP were charging other CCGs for our costs in error. Estimated overspend is £446,00 for the year.”
A Community Health Partnership spokeswoman said: “We are still clarifying at this stage with the CCG if there are any variances.
“Billing is a complex process, especially for buildings where occupancy and responsibility is shared between various parties, and there may inevitably be some debate around the correct amounts to be paid.”
CHP declined to say which other CCGs had been affected by the error, or for how long the incorrect billing took place.
CHP is “head tenant” for five buildings in southern Derbyshire that were commissioned by the region’s former primary care trust from 2005 to 2010.
The sites are:
- Alfreton Health Centre, Alfreton;
- Coleman Health Care, Derby;
- St Oswald’s Community Hospital, Ashbourne;
- Swadlincote Health Centre, Swadlincote; and
- The Village Community Medical Centre, Derby.
CCG board papers and information provided to HSJ
24 April 2015