Annual Report and Accounts 2012/13 - Royal Bournemouth Hospital

Business ReviewCompetition inquiry processIn November 2012, the Office of FairTrading (OFT) announced that it wouldreview the proposed merger as part ofits new role in assessing the competitionaspects of foundation trust mergers - asset out in the Health and Social Care Act2012.In January 2013, the OFT, as expected,referred the proposed merger to theCompetition Commission. This allowedfor a period of further review and analysis,which was anticipated by the trusts beingthe first foundation trusts in the UK tofollow this process, and will reassure thata merger is indeed in the best interests ofpatients and staff.During the remainder of the financialyear the trusts have been working withthe Competition Commission (CC) topresent a strong case on the clinical andfinancial benefits of merger and respondto information requests. A decision by theCC is expected in the summer of 2013.Public consultation outcomesIn April 2012 the Trust completed a jointpublic consultation with Poole HospitalNHS Foundation Trust on the proposedgovernance arrangements for theproposed merged trust.The feedback provided was reviewedand considered by the governors anddirectors of both Trusts.The name “Bournemouth and Poole NHSFoundation Trust” was chosen for theproposed new organisation.The public membership constituencies forthe new organisation are:l Bournemouthl Poolel Dorset (including local authority areasfor Christchurch, East Dorset, NorthDorset, Purbeck, West Dorset andWeymouth and Portland)l Hampshire and WiltshireThe following classes make up the staffconstituency of the new organisation:l medical staffl clinical staffl all other staffThe Council of Governors will be made upof 31 governors - 20 public governors, sixeach from the Bournemouth, Poole andDorset constituencies and two from theHampshire and Wiltshire constituency.There will also be five staff governors andsix appointed governors representinglocal stakeholder organisations.The minimum age to be a member ofthe new organisation will be 12 andthe minimum age to vote and to be aGovernor will be 16.The consultation proposals for the neworganisation on the size and compositionof the Board of Directors, the constitutionand elections were adopted withoutchange.4.2 Financial performanceFollowing the Trust continued to maintainstrong financial control during the year,culminating in a surplus of incomeover expenditure of £3.6m (1.4% of its£249m turnover). This surplus exceededthe financial target set and agreed withMonitor, the Trust’s regulator.Delivering a surplus is a key part of theTrust’s medium term financial strategy,and will be retained and used tosupport the 2013/14 capital investmentprogramme approved by the Board ofDirectors. The capital programme sets outplans to invest a further £9.4m in facilitiesto provide high quality healthcare.The surplus is the result of deliveringsignificant cost improvement duringthe year combined with a high level offinancial control within the individualdirectorates. The Trust has resourcedand implemented a significant numberof additional activities to contain thepressures experienced during the winterperiod and received a contribution tothese costs via the Strategic HealthAuthority. The Trust also received agenerous contribution from the StrategicHealth Authority towards the costsincurred as a result of the merger process30Annual Report and Accounts 2012/13