FINANCE: South Warwickshire Foundation Trust is in negotiations with local clinical commissioning groups for a “significant reduction” in income.

February board papers say the cut will be mitigated by rising demand for services.

The finance report says: “The trust continues to make progress on its contract with CCGs for 2012-13… The coming round of contract negotiations will be crucial to the trust’s financial position next year.

“However, contract negotiations for 2012-13 with NHS Warwickshire has started from the point of a significant reduction to income above the 1.5 per cent reduction in tariff required by the Department of Health.

“The initial reduction of some 4 per cent (strategic change and quality, innovation, productivity, prevention) have been tempered by the reality of activity and rising demand for our services.

“However, the position means that the trust cannot rely on the existing income position to maintain its financial position.”