FINANCE: South West Essex PCT is forecasting that it will fall £11.6m short of its turnaround plan for the current financial year.
The PCT had to develop a turnaround plan after it was heading for a deficit, but is now forecasting a breakeven for the end of the current year thanks to the release of £7.9m of contingencies.
However, the PCT’s latest finance report said: “At this stage against the previous programme of £37.1m of initiatives, £25.5m achievement is forecast.”
It added: “Any slippage against the value of the programme will impact on the financial position of the PCT in the current year.”
The report said the reduction is “most significantly” due to the following factors:
- £2.3m reduction from the mental health schemes relating to South Essex Partnership Trust and specialist mental health providers
- £7.5m of acute initiatives, including £5.3m against the extended waits initiative (from a total of £18.1m)
- £2.0m savings against specialist commissioning not achievable
- £0.5m CAMHS [Child and Adolescent Mental Health Services] savings not achieved
- £2.1m removal of savings against specialist activity