FINANCE: West Hertfordshire Hospitals Trust is achieving below its planned surplus because savings schemes are below the target set in its financial recovery plan.

The trust has a surplus of £4.2m compared to a £6m plan.

The trust’s board reported on the causes of the shortfall, saying: “Pay remains overspent due to the continued use of high cost temporary staff in theatres and midwifery. Clinical non-pay costs are in excess of budget mainly due to drugs (for which there is some offsetting of income for high cost drugs) and medical and surgical consumables.

“‘Big Ask’ savings are running £1.4m behind plan year to date (£1.2m at month eight) and the annual total of green schemes is £14.7m (£14.15m at month eight)
against the targeted savings required in the financial recovery plan of £18.8m.

“Discussions with NHS Hertfordshire are taking place to ensure that risks relating to contract income are minimised.”