FINANCE: NHS Surrey is forecasting a breakeven position at the end of the month – but only by handing a £33.6m headache to clinical commissioning groups.
The PCT plans to achieve breakeven on its £1.76bn budget by using contingencies and reserves, and deferring investments and other spending – including money from the cancer drugs fund.
But its overspend against plan – mainly on acute care – is expected to be £33.6m, creating a challenge for CCGs when they take over.
Among the PCT’s main suppliers, the overspend at Ashford and St Peter’s is expected to be £6.3m at year end and overspend with private providers is forecast to be £3m. The risk of retrospective continuing care claims has been calculated at £2.5m for 1586 claims, and the cost of reform and transition at £8.3m.
Most CCGs are unlikely to meet their financial recovery plans: the report says that their financial recovery plans totalled £37.4m and at the end of month 11 £23.6m had been achieved. Surrey Downs and East Surrey CCGs both have gaps of more than £6m. The PCT’s control total has also been reduced by £10m.
A QIPP report said that projects in the acute sector had underperformed. ‘Without cap and collar in place to share the risk with acute providers in 2012/13 that supported performance in 2011/12 the PCT and CCGs have struggled to maintain contracts within budget,’ it says.
The investments which have been deferred included money to tackle the 18 week wait backlog and to fund health visiting services.