FINANCE: St George’s Healthcare Trust ended the last financial year £5.4m behind plan because of failed savings plans and challenges from commissioners.
The entire region had achieved 82 per cent of its cost improvement programme in January - a total that rose only 1 per cent in the last two months of the year, NHS London papers reveal.
But the report to the SHA’s board said the Department of Health had “agreed a revised control total for London based on the forecast position at month 10 (excluding trusts)” and that this new total of £301m for PCTs and the SHA had been “overachieved” by £90m.
The report said: “The position of trusts and PCTs continues to be dominated by activity levels significantly in excess of plan and difficulties in delivering the unprecedented level of cost improvement factored into the plan.
“Overall, trust CIPs will deliver £365.4m or 4.8 per cent of turnover (83 per cent of plan – similar to month 10), whilst PCT savings under the Quality, Innovation, Productivity and Prevention (QIPP) programme will amount to £396.6m or 2.9 per cent of resources (87 per cent of plan and £5m more than predicted at month 10, mainly due to an increase in cost improvements savings in North Central London cluster).”
It said seven trusts had “material adverse variances from plan” at the end of the year, totalling £46.1m.
It said St George’s Healthcare Trust had ended £5.4m behind plan because of failed savings plans and challenges from commissioners.