'Major effort' needed to stay in budget - Shropshire CCG boss
A Shropshire health boss says it will require a "major effort" to stay within the constraints of a proposed budget this year – but claims it is achievable.
Shropshire Clinical Commissioning Group (CCG) is expected to sign off on its budget plan for 2018/19 at a governance board meeting today.
It is expected that the CCG will have to end the year with a deficit of no more than £13.3 million and will get a financial reprieve if it meets this target.
The CCG would be given £13.3m by a commissioner support fund to offset that year’s debt.
A report to the governing body says the CCG ended the 2017/18 financial year with a deficit of £27.045m – marginally higher than what was forecast last month.
Finance bosses previously said this could be reduced by using nearly £2 million in the CCG’s reserves.
The amount will be added to its historic debt of £32.6 million.
Dr Simon Freeman, accountable officer for Shropshire CCG, said the CCG had gone through a very difficult period.
He said: "We have had a number of things hit us in the air like Shropdoc support and the national drug prices.
"Clearly next year to get down to £13.3m will require a major effort but I think it is achievable.
"We are all focused on doing that."
Plans show that the CCG will also need to make more than £20 million in savings in 2018/19 to reach its target.
Areas such as commissioning, contracting and prescribing will be looked at.
A report to Shropshire CCG's governance board by Claire Skidmore, chief finance officer, says: "The current draft CCG plan meets planning requirements including achievement of the control total set for the organisation of £13.3m.
"The CCG’s QIPP programme of £20.5m remains challenging but should be, to a large extent, deliverable. £4.84m of the £5.34m reported risk is attributable to QIPP risk which is a reflection of the fact that some schemes still carry a high level of risk and that there is £2.47m for which there are currently no plans.
"Whilst there is a small level of risk mitigation that requires further work through quarter one of the year, the executive team are committed to rapidly identifying actions that will fully meet the required figure.
"It must not be forgotten that if the unmitigated risk did materialise and the CCG were to miss its control total, the commissioner support funding would not be earned.
"This would mean that the deficit accrued in year in 2018/19 would not be abated and therefore the total accumulated deficit of the CCG would increase further."
The board will meet this morning at Shropshire Education and Conference Centre at Royal Shrewsbury Hospital.
