January 2012 - Sandwell & West Birmingham Hospitals

MINUTES
the New Year.
In terms of the estates strategy, the Board was advised that it was proving
challenging to reconcile the retained estate position to that required in the Long
Term Financial Model (LTFM). It was reported that the estates strategy had been
updated to articulate the retained estates solution, including the services that
would be provided from the various locations. The strategy was reported to
encompass the estates rationalisation plans and some elements of the
forthcoming stroke reconfiguration plans. It was highlighted that the retained
estates plan looked to be valued at c. £60m rather than the original value of £30m
therefore there was a need for further analysis and review. It was suggested that
the most appropriate solution within the original financial envelope of £31m
might need to be considered. Mr White advised that within the financial model,
care was taken to ensure that a Financial Risk Rating of 3 was maintained,
although it was recognised now that the retained estates position might impact.
Mr Sharon asked whether the situation would result in the Trust needing to
deliver additional savings through its Cost Improvement Programme. Mr White
confirmed that this was possible if the liquidity ratio deteriorated. Mr Adler
advised however, that there was no further scope to increase the magnitude of
savings to be delivered through the Transformation Plan.
In summary, it was agreed that Mr White would review the LTFM to identify what
scope existed within the model for additional capital expenditure above the £31m
originally assumed. The Estates strategy would then need to be reviewed to take
into account the findings of the LTFM review.
5 FT workstream high level milestone plan
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The FT Programme Board received and noted the updated FT workstream high
level milestone plan.
Mr Sharon reported that at present, the milestone plan showed that engagement
would not commence until the Outline Business Case (OBC) had been approved. It
was reported that there were advantages to commencing engagement in that it
demonstrated a willingness to progress the FT application, however there seemed
little benefit to doing so at present given the current level of uncertainty and
delay. It was noted that the Aspirant Foundation Trust Assurance Framework
(AFTAF) work now needed to be incorporated into the project timeline, which
would extend the timescale to some degree. Mr Sharon advised that the Strategic
Health Authority had postponed the Board to Board exercise until May 2012.
Mr Adler advised that little further progress was expected on the consideration of
the OBC until the ‘bottom up’ costing plans for the Transformation Plan had been
developed. He suggested that this work could be completed by the end of the
current financial year. In parallel, the Board was advised that a review of PFI
schemes by the Treasury had commenced, during which time approval of the OBC
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