FINANCE: Oxford University Hospitals Trust described its financial position as “broadly on plan”, despite commissioning income being £7.6m more than expected.
Board papers for November said that in the year to date: “Commissioning income was £7.6m above plan… pay expenditure was £4.2m above plan. This is explained by the staff required to deliver additional activity, other cost pressures and, partially, delays to the implementation of cost improvement programmes.
Increased activity was also having an impact on non-pay budgets. Drugs budgets were overspent by £2.4m and medical & surgical supplies budgets (including appliances) were overspent by £600,000.
Emergency activity exceeded the contract threshold and the 30 per cent “marginal rate” was applied to the over-performance, costing the trust £1.9m.
The trust delivered £18.7m in savings in the year to October, worth 90.4 per cent of the year-to-date plan.
Meanwhile £5.6m of the original savings plan is categorised as “high risk”, as planned ward closures have not taken place due to high levels of bed occupancy.