Health commissioners in Telford facing 'significant cost pressures'

Telford & Wrekin Clinical Commissioning Group's governance board will be told at a meeting next week that 'a rapid increase in costs and activity within the mental health area of continuing healthcare' has been the main driver for pressures on the CCG's budget.

There have also been cost pressures around musculoskeletal healthcare and ambulance conveyances, according to a report to Telford & Wrekin CCG's board.

In the report, deputy chief finance officer Laura Clare says it will be a 'challenging year' financially and there is a need to find another £4.9m in the CCG's savings plan to balance the books in 2019/20.

Within the first two months of this financial year, the CCG's finances showed an overspend of £1.2m.

The report said: " We are experiencing significant cost pressures in the acute sector particularly around musculoskeletal activity and ambulance conveyances but the main driver for the overspend at month two is a rapid increase in costs and activity within the mental health area of continuing healthcare.

"Year on year growth in this area is in excess of 30 per cent.

Risk

"This is being urgently investigated within the CCG although early findings suggests that this is due to a number of high cost new cases."

The report says work is under way to try and achieve the savings required over the next year.

In the report, Ms Clare adds: "However, an unmitigated risk of £5.6m for the CCG is significant and the lack of mitigating plans actually in delivery presents a very serious concern to the financial position.

"The CCG continues to work to mitigate this risk.

"We are working closely with our partners to identify potential efficiencies by looking at full pathways of care linked to opportunities identified through Right Care.

"In addition, we are looking at all areas of discretionary spend within the CCG for the potential to release further resources."

There are plans to dissolve Telford & Wrekin CCG, along with Shropshire CCG, by April next year so that a single organisation can be set up which will be responsible for buying local NHS healthcare services for people across the whole county.

This led to Telford & Wrekin Council's leader Shaun Davies saying his council will fight the plans, which he claims amount to the town being "fleeced" to help Shropshire CCG, which has an historic deficit of more than £70m.

In support, Shropshire Council said it was a "positive step".

Telford & Wrekin CCG's governance board will meet on Tuesday.