FINANCE: The north London hospital trust has accounted for the possibility that it will breach the £2.3m activity limit cap with its main primary care trust commissioners in north central London (NCL) by £3.7m.
The trust reported that the level of overperformance at month nine was at £2.1m - although “the estimated position for month 10 is below plan, and based on this estimate the Trust would remain below the capped level in Month 10.”
However, the finance papers said the hospital also faced a £300,000 underachievment against its Commissioning for Quality and Innovation target.
The hospital’s finance report said the potential combined full year loss of £4m had been “recognised in both the forecast and the actual position to date.”
The paper said: “The purpose of this arrangement reduces the risk to the NCL [commissioners] of an outturn position which cannot be afforded, and while transfering an element of risk to the Trust it also reduces the risk to the Trust of ongoing challenges against reported income.”
The trust is now forecasting a year-end £10.56m cost improvement plan saving against a target of £12.5m.
At month 10 the Whittington had an income and expenditure surplus of £1m, £1.4m higher than planned.