You will all be aware that for the first time, the Trust will report a deficit at the end of this year of £4m. Our position reflects the national picture where it is expected that 75% of trusts will report a deficit at the end of this financial year. Without some clear, decisive action, it is likely that next year we could see this grow significantly.
There are several reasons for our position:
- We haven’t delivered our cost improvement plans this year
- There is pressure to deliver more cost improvement in 2015/16
- The cost of delivering services across two sites
- Increasing activity
- The cost of our PFI
To help us put together a plan for a more stable and sustainable financial position we have put in place turnaround arrangements. For the next financial year, this will require the delivery of £14m savings between April 2015 and March 2016. Very few trusts deliver all of the savings they plan for, so to meet the £14m target we need to plan for more than that amount. This is a very different way of working for the Trust. To deliver the savings required each division and the corporate/support teams must reduce expenditure by at least 4% over the next financial year. If we are to achieve this, the Trust will need to transform our working practices and our approach to planning and implementing savings. Each and every member of Trust staff has a role to play in this. We can only deliver real change if all staff are proactive in generating and pursuing savings ideas while still ensuring that we are delivering safe compassionate care. If you have an idea please share this by emailing EfficiencyPMO@cht.nhs.uk #ideaschangeCHFT. All ideas will be considered – no idea is too big or too small.
The progress we are making will be monitored each week by the Programme Management Office and at the Turnaround Executive meeting
This coming year represents the biggest challenge we have faced as a Foundation Trust. But we have the staff, the drive and the commitment to make sure we have a safe and sustainable organisation.