Health Trusts Borrow Money From Health Board In Order To Make Savings. This money will have to be paid back on top of making the required savings as per Transforming Your Care and other saving policies
income assumptions have been made at arriving at the year to date and
forecast position and are subject to on-going review with the Board. The key
contributors to the year to date deficit are:
a significant shortfall in relation to 2013/14 savings;
continued overspending in relation to cost pressures which emerged during 2012/13.
The Trust notes that its anticipated year end deficit of £2.5m reflects that they received £6m of their £8.5m bridging requirement. The Trust considers that this forecast position will only be achieved if directorates recover their savings shortfalls and meet their savings targets in full by year end. In terms of addressing the residual deficit the Trust is exploring opportunities for
additional contingencies but notes that potential solutions may have service
The Northern Trust has reported a year to date deficit of £5.9m, which is
projected to £8.8m by year end on the basis of full achievement of its TYC
savings target. The HSCB have engaged with the Trust in respect of the
financial position and have sought additional information in this regard to
promote understanding of the issues.
The South Eastern Trust has reported year to date deficit of £4.5m with a
projected deficit of £4.8m. The Trust notes that has been a number of
emerging pressures (£8.1m on a full year basis) and in arriving at its projected
deficit it assumes reversal of these by approximately 40% by the end of the
year. The projected position also is based on the achievement of the £11.5m
cash releasing plans it has already developed and the further development
and delivery of an additional £1.2m measures.
The Southern Trust’s year to date deficit is substantially due to the shortfall
in their bridging requirement and additional pressures. The Trust had
signalled that its financial position that was outlined in its TDP had changed.
Given the scale of financial change, which the Trust is projecting as a yearend deficit of £9.2m (of which £2m is the gap between bridging initially
required of £4.8m and indicative bridging support of £2.8m), the HSCB has
been engaging with the Trust to fully understand the financial challenge. The
forecast deficit is based on a straight line basis of the year to date position
after allowing for achievement of its savings and current contingency plans.
The Western Trust has indicated that the year to date deficit of £4.2m has
arisen due to the shortfall in bridging finance in comparison to their bridging
requirement together with a number of new and emerging financial pressures. These have also been reflected in the forecast deficit position of £6m, with c£2m of this attributable to the difference between bridging initially required of £5m and indicative bridging support of £2.8m
NIAS has reported a small year to date deficit of £23k and is forecasting a
balanced position by year end, subject to its assumptions in relation to the
Agenda for Change process.