FINANCE: Winchester and Eastleigh Healthcare Trust has been granted financial support from the SHA.
The trust reported a £413k deficit at the end of December making a year to date deficit of £3.9m against a planned surplus of £223k. The trust is now forecasting a year end deficit of £5.4m which the finance report to the board blames on the “underlying issue of balancing the requirement to reduce capacity in line with savings plans, against the need to sustain operational performance targets, particularly 18 weeks”.
The report goes on: “In short, our inability to deliver cost reductions equal to £11.1m has prevented the Trust from meeting the break even target. The key pressures remain: demand for beds greater than funded capacity (driven by demand), medical agency, orthopaedic prosthetics (driven by 18 week target delivery) and high cost drug spending.”
The trust applied to South Central SHA for support and has been given funds to cover the potential deficit up to £5.4m. The trust plans to retain tight controls on expenditure with a particular focus on closing unfunded beds in order to ensure a break even position at year end.
26 January 2011