Agenda item

Nicky Tamanis, Deputy Director of Finance attended the meeting to provide members with a financial update.  The Deputy Director reported that a 5 year national funding settlement for NHS was announced in June 2018 with an additional £20.5 billion per annum by 2023/24.  With particular reference to 2019/20, the deputy director of finance reported that nationally:

• 1 year tariff and planning round for 2019/20
• Phasing out of Control Totals
• National tariff uplift 3.8%
• Efficiency factor 1.1%
• CQUIN 1.25%
• New centralised procurement arrangements
• “Blended payments” approach for A&E and non-elective activity. Blend of block and activity based payments
• Refresh of Market Forces Factor for first time in 8 years
• Broader range of outpatient tariffs, including non-face to face and non-consultant led

Locally, the Deputy Director of Finance reported that key priorities for the Trust will include, the development of the strategic/business cases for the acquisition of PAHT by MFT and SRFT and the impact of working within Greater Manchester.

Key issues for the Trust going forward will be the reduction of the deficit (currently £68.9 million), addressing the IT infrastructure, a backlog of estates work as well as reducing the reliance on the temporary workforce.

Those present were given the opportunity to make comments and ask questions and the following points were raised:

Members discussed the deficit.  The Deputy Chief Finance Officer reported that it is envisaged that the organisation would have a balanced budget within three years.  Service delivery will always be the Trust’s priority.

Responding to a Member’s question, the Deputy Chief Finance Officer reported that there are a number of reasons for the large deficit; including problems with recruitment and retention, higher than average agency costs, structural issues as well as a failure to agree on a control total.

With regards to future budget planning the Deputy Chief Finance Officer reported that a one year budget for 2018/20 will be finalised shortly.

Responding to a question in respect of the newly introduced blended payments approach for A&E and the refresh of the Market Forces Factor, the Deputy Chief Finance Officer reported that this work was overdue.  The Deputy Chief Finance Officer reported that she does not expect this to have a negative impact on the Trust’s finances.

The Deputy Chief Finance Officer reported that capital works would still be undertaken at the North Manchester site during this transitional period. 

Responding to a question from the Chair, the Deputy Chief Finance Officer reported that there has been improvements in the amounts of money spent on agency staff.  This is as a result of recruitment from oversees of a number of medical staff, as well as an increase in the number of newly qualified nurses and the development of the workforce transformation programme.  The programme includes the development of a number of new roles to complement the traditional medical roles including nursing associates/technicians.

In response to a member’s question the Deputy Director North East Sector reported that she does not believe that the organisations across Greater Manchester will become one health organisation.

Responding to a Member’s question in respect of collecting monies for treatment from overseas visitors, the Deputy Chief Finance Officer reported that the Trust performs well in this area.

Councillor Roy Walker raised concerns that the transaction and the establishment of the Northern Care Alliance would result in the loss of the title Salford Royal Hospital, a strong brand with a reputation for outstanding health care provision.

It was agreed:

• The Deputy Chief Finance Officer be thanked for her attendance.
• Information be provided to the JHSOC in respect of monies re-couped for oversees patients.
• Once available a more detailed budget report would be considered at a future meeting of the JHOSC
• A briefing report in respect of the Trust’s IT Strategy will be considered at the next meeting of the JHOSC
• An estates management report will be considered at the next meeting of the JHOSC.