FINANCE: Sheffield PCT - which struggled financially in 2010-11 - has a £19m savings plan for 2011-12 and is planning to make a recurrent surplus.
The PCT’s budget is just under £1bn. After significant effort to break even in 2010-11, it recorded a small surplus but was still £3.5m short of its plan.
A PCT finance plan says its “ability… to release the [planned] financial savings… is of key importance during this financial year and onwards. The most challenging elements are to reduce [continuing healthcare] spend and to reduce hospital capacity for emergency care, linked to increased capacity to provide care out of hospital. The level of QIPP savings required to deliver the 2011-12 financial plan is £19m, net of the £5m investment required to achieve these savings”.
An SHA finance report says: “During 2010-11, the PCT’s financial position deteriorated due primarily to significant increases in non elective activity, significant pressures relating to continuing healthcare and free nursing care, pressures relating to specialist commissioning activity, and slippage in planned efficiency programmes. Significant actions have been taken on a health economy wide basis to bring the PCT to financial balance in 2010-11.
“The recurrent implications of the above have left the PCT with an underlying deficit going into 2011-12. However constructive QIPP and contract discussions within the health economy have led to an agreed QIPP programme which will enable the PCT to achieve its financial plans, including a recurrent surplus. A significant element of this is centred on the PCT’s work with its local providers to redesign healthcare systems in the city and align capacity within available resources.”