FINANCE: The South London and Maudsley Foundation Trust is reporting a reduced net surplus and EBITDA so far this year.
The mental health trust’s February finance report said: “At the end of month 10, the trust is reporting a net surplus of £6.5m (£2.7m below the current plan) and EBITDA (earning before income tax, depreciation and amortisation) of £17.4m (£2.5m below the current plan). In the current plan there has been no release of the contingency reserve or investment fund.”
It added: “Based on this position, the trust has updated its forecasts and is now predicting a year-end favourable variance from planned EBITDA of £0.5m alongside a risk adjusted adverse variance from planned EBITDA of £0.9m.”
The report said the operational deficit had been covered by the “release of provisions” and said £3.4m had been released to date.
It said the deficits were driven high ward nursing costs and acute overspill beds in the psychosis clinical academic group (CAG), nursing costs in the older people’s CAG and “high levels of pay expenditure in forensic services” in the behavioural and Development CAG.
The report added: “The deteriorating position of the above CAGs/directorates is a cause for concern given plans need to be in balance for 2012/13 and with further CIPs and transitional support due to come out from 1/4/12.”