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Council of Governors Meeting

Council of Governors Meeting. Financial Climate and its implications Suzanne Tracey Director of Finance and Business Development. January 2010, Item 8. National Headlines. Pre budget report health sector protected relative to other public sectors Previous levels of growth 5.4% per annum

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Council of Governors Meeting

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  1. Council of Governors Meeting Financial Climate and its implications Suzanne Tracey Director of Finance and Business Development January 2010, Item 8

  2. National Headlines • Pre budget report health sector protected relative to other public sectors • Previous levels of growth 5.4% per annum • Savings of £15-20bn over 3 years from 2011/12

  3. Operating Framework – Impact for PCTs • 2010/11 Revenue growth average 5.5% • 2011/12 & 2012/13 “flat real term” growth • 2% of 2010/11 growth set aside non recurrently to support system transformation • Commissioner development • Timetable for proposals for community services by March 2010 (implementation March 2011) – particular focus on integration • 30% reduction in management costs over 4 years across PCTs and SHAs

  4. Operating Framework – Impact for Trusts • 0% tariff uplift in 2010/11 (3.5% efficiency gain) • No better than 0% to 2013/14 with increased efficiencies • 30% marginal payment for emergency activity above 2008/09 outturn levels (SHA rules for handling savings) • Introduction of 4 best practice tariffs • Contract penalties (cancer, 18 weeks, CDiff, mixed sex accommodation, A&E waits) • No payment for the 7 “never events” • 1.5% available through CQUIN • Accelerate FT pipeline – trajectories for all remaining NHS Trusts by April 2010

  5. What does this mean for RDE ? • NHS Devon Financial Position • Transformation Programme • 10% Reduction in contract income • Growth in activity within less resources • Savings target £14m for 2010/11

  6. How are we preparing ? • Introduction of Service Line Reporting • Development of programme management approach • Communications strategy to engage all staff and key stakeholders • Review of Trust’s future strategy • Partnership working with NHS Devon

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