Trust Board papers - University Hospital Southampton NHS ...

Finance169/12 Finance Report for Month 7 (agenda item 4.1. Enclosure 2)a) AM presented the report which updates Board on the financial, activity and savingsperformance of the Trust for October 2012. AM noted that October was a highactivity month and an estimate had been made of expected income in the report;the actual income had been reported yesterday and the actual income is slightlyfavourable to the estimate such that the Trust is more on plan than reflected in thereport.Still working hard on CIPs. Trust liquidity quite tight. Raised concern about thelevel of activity in the hospital and amount of non-elective activity which is impactingupon elective activity with an impact upon income.169/12 b) A discussion followed covering: NM confirmed that Strategy and Finance Committee had scrutinised the reporton 26 November. Committee happy with the report but concerned about thelevel of activity which could impact upon the finances as the position is reallytight MH confirmed that the Trust is working hard to identify further savings to seek toremain on financial target.169/12 c) After discussion Trust Board: Noted that in October the Trust has delivered a pre-impairment surplus of£504k, £223k worse than Plan and the cumulative position is a surplus of£2,352k which is £203k worse than Plan Noted that Cost Improvement Programmes (CIPs) delivered were cumulatively£0.9m below Plan, which is phased based on a historic delivery profile. Thiswas a £0.1m deterioration in October. The target is fully identified at 31stOctober although a significant element remains classified as amber Noted that divisions and headquarters overspent against expenditure budgetsby £1.8m, this was exacerbated by a £0.4m overspending on reserves andcorporate budgets. This was largely offset by income being £1.8m above plan inthe month Noted the October position is based on a number of specific assumptions onIncome.170/12a)Reference Cost Index 2011-12 Full Publication (agenda item 4.2. Enclosure 3)AM stated that the report, which informs Board members of the Trust’s referencecost index for 2011-12, is for information. The data has just been released by theDH. UHS is lowest in the peer group of hospitals. The report includes a brief noteof future developments in costing the tariff.170/12 b) A discussion followed covering:Query on whether calculating costs/tariffs based on foundation trusts or tertiaryhospitals would impact upon the tariffs. Possible that there could be a shiftamong tariffs and a tariff more akin to costs in non-elective and tertiary work Will be sharing the result with the commissioners NM noted that Strategy and Finance Committee had discussed this andcongratulated execs on achieving lower costs than average and encouragedthat this is shared within the organisationMMu noted the information will be used in business case preparationClarification of how RCIs are included in strategic objectivesNeed to link to quality etc as having a low Reference Cost Index (RCI) is not anend in itself but part of the cost, quality and activity triangle.170/12 c) After discussion Trust Board: Noted the reportNoted that this secures a strategic objective set by Trust Board in 2012/13 tokeep RCI at or below the average of our peer group.2