FINANCE: Worcestershire Acute Hospitals Trust is set to receive £7.3m of transitional support from NHS Worcestershire.
According to board papers, NHS Worcestershire staff, supported by emerging commisisoning consortia, have been negotiating key contracts.
Formal contract variations have now been drawn up with Worcester Acute Hospitals Trust, which “reflect the outcome of detailed contract negotiations”. It is proposed that a contract is drawn up on behalf of the consortia with a contract value of £250.3m.
The papers said that while a number of areas of expenditure could be classed as non recurrent, it is currently proposed that £7.3m be charged against the 2 per cent non recurrent budget NHS Worcestershire is required to establish under the 2011-12 Operating Framework.
In return for the £7.3m support identified above, it has been negotiated that up to £5m of payment by results elective activity above plan will be provided at zero marginal cost and between £5m and £7m at a marginal cost of 50 per cent. Activity above this level and all non elective work will be governed by payment by results.
The board papers note that it is however recognised that specific elements of the contract will need to be signed off by the Strategic Health Authority.
NHS Worcestershire, finance report
23 March 2011