FINANCE: The Royal Free London Foundation Trust is planning to maintain its financial risk rating score with Monitor at four until at least the end of 2014-15.

The trust’s annual plan review revealed it planned to make cost improvment programme savings of £24m over 2012-13 and the next two years.

The report said the trust recognised that the plans would have to be based on the principle of “minimal activity growth” over that period.

Other assumptions included a “generic growth assumption of two per cent [increasing] income over the period (with the exception of some specialist growth assumptions), tariff reduction of 1.8 pr cent per year for non Payment by Results and 1.5 per cent for Payment by Results.

“Price inflation in line with the trust’s best estimate of price changes over the next three years. Pay costs are modelled using the national pay freeze for the next three years and drift is calculated using historic performance at the trust.”

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