FINANCE: West Hertfordshire Hospitals’ has said a contract offer from the local primary care trust was “not acceptable”.

The trust’s budget setting report for 2011-12, submitted to the March board meeting said planning assumed a contract value of £201.4m which was “based on a proposal put to the PCT and is close to the value implied in the QIPP”.

But the report said the PCT had offered £194.7m, plus “£5.9m to ‘manage and support demand in a more effective manner’, which would increase the contract value to £200.6m, however as this is based on a non PbR contract it is not acceptable to the Trust”.

It added: “The trust has written back to the PCT with a counter offer of £203m. Negotiations are ongoing and a further update will be provided at the board meeting.”