Annual Report 2010 - St. James's Hospital

Corporate Division Reports I Financial Statements and Report
The Financial Statements for the reporting period 1st January
2010 to 31st December 2010 resulted in a surplus of
€0.277m. Hospital gross expenditure was €414.045m, while
income and exchequer funding amounted to €414.322m.
In addition to the 2010 surplus the hospital had an opening
surplus of €28.034m carried forward from 2009 and prior
years. Therefore the cumulative carried forward surplus at
31st December 2010 was €28.311m.
Expenditure and Income overview
Net expenditure decreased by €13.886m (3.9%) when
compared with the previous year, of which pay and pensions
expenditure decreased by €15.875m (5.8%), non-pay
expenditure increased by €0.922m (0.5%) and Income
decreased by €1.067m (1.7%).
Expenditure description continued €’000
Pathology/pharmacy/retail units/car parking/other (€0.484m)
Sub total income related
(€1.067m)
Commentary
The hospital again exceeded service delivery targets for the
year, while absorbing a funding reduction of approximately
€26.5m. Most of this reduction was offset by the introduction
of a public sector pay cut on average across all staff grades of
7% or €18m. However management needed to fi nd additional
effi ciencies amounting to approximately €16.3m within the
year to bridge the funding reduction and to offset infl ationary
pressures, additional service demand, increased costs of pay
increments, pensions and pension lump sums. Overall, the
hospital fi nished the year with a minor surplus of €0.277m.
The principle elements of increases/decreases in expenditure
and income for the year related to the following:
Expenditure/Income description €’000
Payroll related
Public sector pay reduction
(€18.126m)
Staffi ng, overtime and related reductions
Pensions, lump sums and gratuities
Increments
Additional staffi ng - cancer control programme
Sub total payroll
(€4.646m)
€4.399m
€1.896m
€0.602m
(€15.875m)
Non-pay related
Drugs and medicines
(€0.277m)
Blood/blood products (€1.812)
Medical and surgical consumables
€0.712m
Laboratory consumables
€0.409m
Medical equipment and equipment maintenance €0.050m
Cleaning/Laundry etc.
(€0.042m)
Radiology
€0.559m
Professional, insurance, audit & legal services €0.100m
Offi ce expenses
(€0.256m)
Bad debts
€3.475m
Maintenance equipment and materials
(€0.710m)
Heat power light
€0.019m
Computer equipment/supplies (€0.863)
Other misc issues
(€0.442m)
Sub total non-pay related
€0.922m
Income related
Patient accommodation income including
Government levies
Superannuation
(increased employee pension contributions)
€1.113m
(€1.696m)
Management remained very mindful of the economic
backdrop facing the economy. At the outset of the year
strategies aimed at a continued improvement on effi ciency
were further imbedded within all services throughout the
hospital, while at the same time deliberately planning to deliver
a fi nancial surplus which could cushion the hospital in the
event of future reductions to core funding. The strategy proved
successful and the hospital carries forward a fi nancial surplus
of €28.311m, which should in some part offset the affect of
the constrained public fi nancial environment going forward.
The funding/service delivery monitoring and negotiation
framework conducted by the Health Services Executive was
in its sixth year of operation and further moves to transfer
resources from hospitals to community services were are the
core to the process.
The Clinical Directors, Corporate Managers and Respective
Management Teams are to be commended on their fi nancial
management performance.
Casemix Funding Model (Result published in late 2009)
The hospital received a minor funding increase/effi ciency
award of €1.525m as a result of the casemix funding model
of activity and related expenditure for the year 2009.
Capital/Infrastructure Expenditure
Expenditure on major capital projects amounted to €2.987m
in 2010 compared with €4.012m in 2009. This refl ects the
severe decrease in the availability of capital funding to address
infrastructure replacement.
26