FINANCE: The new community provider in Southampton and Portsmouth met its cost savings goal for 2010-11, but only by implementing non-recurrent savings that have now been added to its 2011-12 target.

Solent NHS Trust, which last year was hosted by Southampton primary care trust, saved £7.1m – or 4 per cent of its income – in 2010-11.

Some savings schemes would not deliver their full savings in 2010-11, the trust said. £557,000 of the in-year savings were made non-recurrently and this “has been added to the 2011-12 targets”.

The sum feeds into the trust’s 2011-12 Transformation Delivery programme. In 2011-12, the trust must save £8.7m, comprising of £5.6m internal savings, £1.8m reductions in commissioner contract savings, the £556,000, and a further £240,000 of contractual savings from 2010-11 carried over.

The £8.7m also contains a £500,000 contingency fund.

Income from the trust’s main contracts fell short of target by £600,000 in March.

The trust also achieved a surplus of £909,000 in 2010-11, slightly above its initial £906,000 target, but short of a later adjusted target of £946,000.

Source

Finance and transformation reports

Source date

April 2011

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