FINANCE: Winchester and Eastleigh Healthcare NHS Trust has red-rated its £9.4m service improvement target for 2011-12, having only finished last year in the black thanks to a strategic health authority bail-out.
The acute trust’s risk register for 2011-12 gave the highest possible level of risk for the £9.4m savings target, along with “failure to achieve reductions in demand” and “failure to achieve capacity reductions”. All three were predicted to still be red-rated by the end of the year.
The trust reported a full-year surplus for 2010-11 of £128,000, subject to external audit. However that position included “supplementary” SHA funding of £5.4m.
Winchester and Eastleigh achieved service improvement (SIP) savings of £5.8m, or 52 per cent of its target.
Operating expenditure for 2010-11 exceeded plan by £6.5m.
The trust’s finance report states: “Demand management remains a significant concern; the NHS Hampshire contract continues to overperform, indicating that demand management is having no material effect.
“This is significantly increasing the risk to our internal SIP not delivering, especially those related to capacity reductions (beds).”
The trust also received a “working capital loan” from the Department of Health of £6.5m in December 2010.