Trust Board Febuary 2010 - Sandwell & West Birmingham Hospitals

SWBTB (2/10) 042 (a)
SANDWELL AND WEST BIRMINGHAM HOSPITALS NHS TRUST - NHS PERFORMANCE FRAMEWORK MONITORING
Financial Indicators
SCORING
2009 / 2010
Criteria Metric Weight (%)
October Score Weight x Score November Score Weight x Score December Score Weight x Score January Score Weight x Score
3 2 1
Initial Planning
Planned Outturn as a proportion of
turnover 5 5
Any operating deficit less than 2% of
Planned operating breakeven or
income OR an operating
surplus that is either equal to or at
Operating deficit more than or equal to
surplus/breakeven that is at variance to
variance to SHA expectations by no
2% of planned income
SHA expectations by more than 3% of
more than 3% of income.
planned income.
0 3 0.15
0 3 0.15
0 3 0.15
0 3 0.15
Year to Date
YTD Operating Performance
25
20
Any operating deficit less than 2% of
YTD operating breakeven or surplus
income OR an operating
that is either equal to or at variance to
Operating deficit more than or equal to
surplus/breakeven that is at variance to
plan by no more than 3% of forecast
2% of forecast income
plan by more than 3% of forecast
income.
income.
-0.04% 3 0.6
-0.03% 3 0.6
-0.02% 3 0.6
-0.01% 3 0.6
YTD EBITDA 5
Year to date EBITDA equal to or
greater than 5% of actual year to date
income
Year to date EBITDA equal to or
greater than 1% but less than 5% of
year to date income
Year to date EBITDA less than 1% of
actual year to date income.
7.80% 3 0.15
7.86% 3 0.15
7.78% 3 0.15
7.78% 3 0.15
Forecast operating breakeven or
Any operating deficit less than 2% of
Forecast Operating Performance
20
surplus that is either equal to or at income OR an operating Operating deficit more than or equal to
variance to plan by no more than 3% of surplus/breakeven that is at variance to
2% of income
0.00% 3 0.6
0.00% 3 0.6
0.00% 3 0.6
0.00% 3 0.6
forecast income.
plan by more than 3% of income.
Forecast Outturn
40
Forecast EBITDA 5
Forecast EBITDA equal to or greater
than 5% of forecast income.
Forecast EBITDA equal to or greater
than 1% but less than 5% of forecast
income.
Forecast EBITDA less than 1% of
forecast income.
7.69% 3 0.15
7.76% 3 0.15
7.73% 3 0.15
7.54% 3 0.15
Rate of Change in Forecast
Surplus or Deficit
15
Forecasting an operating deficit with a
Still forecasting an operating surplus
Forecasting an operating deficit with a
movement less than 2% of forecast
with a movement equal to or less than
movement of greater than 2% of
income OR an operating surplus
3% of forecast income
forecast income.
movement more than 3% of income.
0.00% 3 0.45
0.00% 3 0.45
0.00% 3 0.45
0.00% 3 0.45
Underlying Position (%)
5
Underlying breakeven or Surplus
An underlying deficit that is less than
2% of underlying income.
An underlying deficit that is greater
than 2% of underlying income
0.61% 3 0.15
0.60% 3 0.15
0.60% 3 0.15
0.60% 3 0.15
Underlying Financial Position
10
EBITDA Margin (%) 5
Underlying EBITDA equal to or greater
Underlying EBITDA equal to or greater
than 5% but less than 1% of underlying
than 5% of underlying income
income
Underlying EBITDA less than 1% of
underlying income
7.69% 3 0.15
7.77% 3 0.15
7.74% 3 0.15
7.55% 3 0.15
Better Payment Practice Code
Value (%)
2.5
Less than 95% but more than or equal Less than 60% of the value of NHS
95% or more of the value of NHS and
to 60% of the value of NHS and Non and Non NHS bills are paid within 30
Non NHS bills are paid within 30days
NHS bills are paid within 30days
days
68.00% 2 0.05
69.00% 2 0.05
70.00% 2 0.05
69.00% 2 0.05
Better Payment Practice Code
Volume (%)
2.5
Less than 95% but more than or equal Less than 60% of the volume of NHS
95% or more of the volume of NHS and
to 60% of the volume of NHS and Non and Non NHS bills are paid within 30
Non NHS bills are paid within 30days
NHS bills are paid within 30days
days
57.00% 1 0.025
67.00% 2 0.05
67.00% 2 0.05
62.00% 2 0.05
Finance Processes & Balance
Sheet Efficiency
Current Ratio 20 5
Current Ratio is equal to or greater
than 1.
Current ratio is anything less than 1
and greater than or equal to 0.5
A current ratio of less than 0.5
1.05 3 0.15
1.05 3 0.15
1.04 3 0.15
1.04 3 0.15
Debtor Days 5
Debtor days less than or equal to 30
days
Debtor days greater than 30 and less
than or equal to 60 days
Debtor days greater than 60
20.35 3 0.15
21.00 3 0.15
22.10 3 0.15
22.76 3 0.15
Creditor Days 5 Creditor days less than or equal to 30
Creditor days greater than 30 and less
than or equal to 60 days
Creditor days greater than 60
42.53 2 0.1
44.19 2 0.1
46.80 2 0.1
46.61 2 0.1
*Operating Position = Retained Surplus/Breakeven/deficit less impairments
Weighted Overall Score
2.9
2.9
2.9
2.9
Assessment Thresholds
Performing > 2.40
Performance Under Review 2.10 - 2.40
Underperforming < 2.10