FINANCE: Trafford Healthcare faces having its core contract for acute work cut from £75.5m to just £39.5m over the next five years, its latest finance report warns.
The trust started 2010-11 with a plan to deliver a £1.2m surplus, sufficient to meet planned loan payments and pursue its goal of becoming an integrated care organisation and a foundation trust, the paper stated. It finished the year with a deficit after impairments of £1.3m, having resolved to seek a partner to take it over.
The report, written on 15 April for the 24 May board meeting, continues: “The Trust continues to face significant challenges for the 2011-12 financial year. It has, as yet, been unable to set a balanced financial plan or budget.
“The Trust is in negotiation with NHS Trafford about the value and mix of work to be delivered in 2011-12 - a reflection of wider issues affecting the Trafford health economy and commissioners’ expressed intention to withdraw investment from acute care provided at the Trust from £75.5m in 2010-11 to a core commitment of c£39.5m over the next 5 years.
“Clearly this presents a considerable level of risk to the Trust and the related cash flow and liquidity issues are regularly communicated to the Board in order to ensure they are fully apprised.”
24 May 2011