Trust Board Febuary 2010 - Sandwell & West Birmingham Hospitals

SWBTB (2/10) 045 (a)
13. CASHFLOW PHASING OF PREFERRED OPTION
Table 15: Cash Flow
2009/10 2010/11 2011/12 2012/13 2013/14
NPV Over 4
Yrs
£'000 £'000 £'000 £'000 £'000 £'000
DCF 3.5% 1.00 1.00 0.97 0.93 0.90
Ranking
Do Minimum
Option 1
Option 2
Option 3
Income 27,875,559 27,898,819 28,150,754 28,332,506 28,522,675
Capital Costs 0 (2,424,027) (932,318) 0 0
Revenue (29,604,181) (30,255,914) (30,625,019) (30,727,245) (30,860,363)
Cash flow total (1,728,622) (4,781,122) (3,406,583) (2,394,739) (2,337,688)
Discounted Cash Flow (1,728,622) (4,781,122) (3,291,384) (2,235,515) (2,108,461) (12,416,482) 3
Income 27,875,559 27,898,819 27,186,021 27,912,074 28,646,566
Capital Costs 0 (1,521,040) (329,806) 0 0
Revenue (29,604,181) (29,506,080) (29,419,584) (29,506,795) (29,639,913)
Cash flow total (1,728,622) (3,128,301) (2,563,369) (1,594,721) (993,347)
Discounted Cash Flow (1,728,622) (3,128,301) (2,476,685) (1,488,689) (895,942) (7,989,616) 1
Income 27,875,559 27,898,819 27,186,021 27,912,074 28,646,566
Capital Costs 0 (1,521,040) (329,806) 0 0
Revenue (29,604,181) (29,506,080) (29,419,584) (29,506,795) (29,639,913)
Cash flow total (1,728,622) (3,128,301) (2,563,369) (1,594,721) (993,347)
Discounted Cash Flow (1,728,622) (3,128,301) (2,476,685) (1,488,689) (895,942) (7,989,616) 1
Income 27,875,559 27,898,819 27,086,021 28,175,077 29,454,073
Capital Costs 0 (1,521,040) (329,806) 0 0
Revenue (29,589,598) (29,506,080) (29,419,584) (29,882,628) (30,532,413)
Cash flow total (1,714,039) (3,128,301) (2,663,369) (1,707,551) (1,078,340)
Discounted Cash Flow (1,714,039) (3,128,301) (2,573,303) (1,594,017) (972,601) (8,268,222) 2
The table above shows a detailed discounted cash flow analysis of all options. Options 1 and 2 show
the same NPV over the four year period and therefore have the same ranking.
14. PROPOSED TIMETABLE
A detailed implementation plan will be developed once the preferred option has been approved by the
Trust and Sandwell PCT at their Board meetings in February. This implementation plan will then be
subject to a Gateway Review by the Office of Government Commerce in early May. The Department of
Health, as part of its guidance on service reconfigurations requires such Gateway Reviews at critical
points during a service reconfiguration project, with one being at the point of Business Case approval
and prior to approval of the implementation plan.
In this context key drivers to implementation timescale and proposed dates are summarised below.
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