Trust Board Febuary 2010 - Sandwell & West Birmingham Hospitals

SWBTB (2/10) 031 (a)
Financial Performance Report – January 2010
Cost improvement Programme
•The adjacent graph shows the monthly profile
of the Trust’s cost improvement programme
and actuals achieved up to January.
•As at January, there is a shortfall against
planned levels of £58k or 0.5% which
represents an improvement against the
position reported for December.
3
2.5
2
1.5
1
0.5
0
Monthly CIP Savings Profile £000s
Actual Savings
Planned Savings
External Focus and Forward Look
• Performance against Service Level Agreements with PCTs showed another significant increase in December and
early figures for January suggest that this trend is continuing. This is consistent with operational pressures being
experienced for example, within A&E coupled with the need to open additional capacity. Pursuing additional
capacity has been a challenge owing to infection control measures (e.g. responding to norovirus) which in turn
creates operational pressures. The rise in activity above start of year plans gives rise to additional costs for
commissioners and negotiations are ongoing with Sandwell PCT as the co-ordinating commissioner to agree a
year end position and therefore generate some financial stability for both the Trust and the PCTs themselves.
• Both Sandwell and Heart of Birmingham PCTs continue to report significant over performance both for
Sandwell and West Birmingham Hospitals and for other providers. Although this over performance is causing
financial pressures for the PCTs, they are expecting to achieve overall financial plans at the year end.
• Work on the 2010/11 LDP is continuing in the context of the Right Care, Right Here programme. Considerable
work is needed by all partners in an effort to bridge the transition period especially 2010/11 in terms of moving
towards activity plans for the overall programme. This is vital to ensure financial stability for the Trust in the
short to medium term and to ensure the Health Economy overall can reach long term financial planning targets.
Developments in the financial planning process are dealt with as a separate item.
• Clearly, if the Trust is to meet its Income and Expenditure target at the end of the year, it is imperative that an
acceptable agreement is reached with Sandwell PCT which protects the Trust’s income levels while, at the same
time, ensures that expenditure is managed within these constraints.
• Given the expectation of a very tight financial settlement, particularly from 2011/2012 onwards, it is essential
that the Trust is in the best possible financial position to move forward over the next few years. Part of this
process will need to be to ensure that underlying financial performance is sound, especially the control of pay
expenditure as evidenced by the effective and efficient delivery of high quality healthcare.
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