10 point plan
The Trust has put in place a 10 point plan outlining key areas of work to build on the improvements already made that lifted the Trust out of special measures, as the Trust seeks to improve quality and safety and improve our efficiency and performance.
One of the key points within this plan is for the Trust to benchmark its finances against South Warwickshire NHS Foundation Trust, in order to inform the financial recovery plan.
Overview of 2016-17
In 2016-17, the Trust delivered a deficit of £37.2m which was in line with the forecast position submitted to NHS Improvement. However, this was the second year that the Trust has failed to deliver the break-even duty and now has a cumulative break even deficit of £52.8m.
Although the Trust has delivered its agreed financial targets in each of the last five years, this has been done with financial support from our partners in Herefordshire and the wider West Midlands health economies.
Despite the significant challenging financial position, the Trust achieved the following in 2016-17:-
- The Trust’s Cost Improvement Programme (CIP) delivered savings totalling £4.5m. The CIP comprised a number of separate projects relating to procurement gains, increased productivity, income generation and pay efficiencies.
- In addition to the formal CIP, the Trust launched a campaign to get all staff involved in making savings. ‘Wye not, Waste not’ generated a significant number of initiatives which have been implemented and which have contributed to the Trust’s final position.
- The Trust spent £6.2m on capital investments during 2016/17. The most significant element within the capital programme (£3.9m) was in relation to phase 1 of the Electronic Patient Record which was implemented in the summer of 2017.
The Trust generated income of £177.6m during 2016-17. The largest share of income is derived from the Herefordshire Clinical Commissioning Group (CCG).
Salaries and wages paid to permanent and temporary staff during 2016-17, including those employed through agencies, totalled £133.6m. Expenditure on goods and services amounted to £74.6m and finance costs (interest payable) totalled £6.4m. Trust staffing costs increased materially when compared with 2015/16, due primarily to the high volumes of agency doctors and nurses that the Trust needed to employ in order to deal with the significant numbers of vacancies it was having to operate with.
Looking to the future
A financial recovery plan has been produced, informed by the financial benchmarking exercise, which will ensure that the Trust improves its efficiency and performance and the organisation is financially viable over the medium and longer term.
Director of Finance and Information
Wye Valley NHS Trust
The County Hospital
Telephone: (01432) 364134