FINANCE: NHS Shropshire County has cut management costs by nearly £300,000 more than planned for 2010-11.
The 2010-11 operating framework stated all PCTs’ management costs had to be reduced by one third. At NHS Shropshire County, this resulted in a commissioning target saving of £393,000 and a provider target saving of £238,000.
At the end of the financial year, the PCT delivered a £554,508 reduction in management costs within the commissioning arm and a £370,783 reduction within the provider arm, subject to audit.
The PCT therefore reduced management costs by a total of £925,291, exceeding the target by £294,291.
The 2011-12 operating framework states that the management cost target will cease after this financial year and from 2011-12 it will be replaced by a target to reduce “running costs”.
The PCT has not yet received its 2011-12 running costs target.
NHS Shropshire County, finance report
24 May 2011