Trust Board Febuary 2010 - Sandwell & West Birmingham Hospitals

SWBTB (2/10) 045 (a)
The scheme duration is assumed to overlap two financial years and funding is assumed to come from
loans, rather than the Trust’s own Capital Programme.
Options 1&2: The capital costs associated with these options are the same. The capital expenditure is
split across two years to reflect the improvements required to Maternity infrastructure on the City site,
£1.5m to increase bed and Delivery Suite capacity in order to accommodate the activity transferred from
Sandwell. This involves:
• Relocation of an admin office to a portacabin
• Loss of the Maternity Board Room
• Relocation of the Antenatal Day Assessment Unit and Transfer Lounge (from M1)
• Refurbishment work on ward M1
• Refurbishment work on Delivery Suite to increase triage, improve reception and the waiting
area, introduce an induction area, increase recovery spaces, improve the scrub facilities in the
second theatre, upgrade the birthing pool.
In addition it includes decanting and decommissioning the vacated Maternity block at Sandwell Hospital
in 2011/12, £330k. This involves relocating the services that would otherwise remain in the Maternity
block (including offices, Colposcopy facilities, Alpha Suite, HIV clinic facilities) so that the building can be
closed to release facility costs and capital charges.
This scheme has been earmarked for prioritisation within the Trust’s Capital Programme for 2010/11
and 2011/12.
Option 3: Option 3 is identical to Options 1& 2, but it should be noted that the location of a stand alone
Birth Centre in the Sandwell borough has been assumed to not require Trust capital resources. It is
expected that this facility would be located within PCT premises and all capital associated costs would
be borne by the PCT. The revenue position therefore assumes a premises rental charge of circa £150k
(as identified by the PCT).
7. ESTIMATED REVENUE COSTS AND INCOME (FULL YEAR EFFECT)
A detailed analysis of each Options’ I&E position between 2010/11 and 2013/14 can be found within
appendices (1 to 4). A snapshot summary of the 2013/14 position is included within section 7 to reflect
the first year where comparison may be made as full implementation has occurred.
7.1 Context
The basis for assessing the overall financial impact on Obstetric services stems from Service Line
Reporting (SLR) results for 2007/08, 2008/09 and relevant updates to reflect any impact of the Trust’s
operational plans for 2009/10. This analysis forms the baseline trading assessment for Obstetric
services and shows an overall trading loss across all maternity related services of £4.56 million.
7.2 Option Appraisal
The financial appraisal undertaken to assess future income and costs across four years for all options
can be found by reference to appendices 1 to 4. The following provides a flavour of the key changes
taking place for each option.
Do Minimum: This option maintains the Obstetrics service provision on the Sandwell site and seeks to
reinforce the infrastructure in both building stock and additional staffing costs to enable safe practice to
be achieved.
Key changes which impact upon the long-term financial position include:
• Additional capital charges/loan interest charges to service the required capital expenditure of
circa £250k by 2013/14.
• Additional Consultant cover, 1whole time equivalent (wte)
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