Hospital trust in Shropshire pushed into deficit by 'Powys shortfall' and cost of doctors' strikes
The trust that runs acute hospitals in Shropshire is now forecasting a deficit of £3 million at the end of the current financial year.
The Shrewsbury and Telford Hospital NHS Trust (SaTH) board was told that a controversial commissioning decision taken in Wales means it won’t receive an expected £2.4m, while strikes by resident doctors have cost it £1.2m.
Non-executive director Richard Miner told a board meeting that the trust is dealing with “really important issues”.
“If we continue our planned actions then we can assume a deficit of £3 million,” Mr Miner told the meeting at Royal Shrewsbury Hospital on Thursday (January 15).
He reminded board members that the trust is being supported to the tune of £45m, meaning that the underlying deficit is closer to £48m.
Officials say that this is a much better position than the trust was in at this time last year – and historically its deficit has been as deep as £100m.
Mr Miner told the meeting that the Powys commissioning decision and the industrial action are “outside our control”.
During the financial year health commissioners in mid Wales began requesting that English hospitals, including in Shropshire, delay operations for non-cancer and non-emergency treatment for Powys patients.
Mr Miner chairs the trust’s finance assurance committee which has been told that support has been requested from NHS England in relation to the commissioning impact.
Apart from the uncontrollable items the trust is on track to “deliver £41m efficiency savings” by the end of the year.
The meeting was told that this savings programme “far exceeds” any other cost reduction programme that the trust has attempted before.
Board members heard that the remaining two and a half months of the financial year present a challenge but the executive team is “all over this”.
SaTH chairman Andrew Morgan said: “We are in a good position but there is a difficult run in to the end of the year to land this.”
The board was told that there is a “growing confidence” inside and outside the trust that it would achieve its targets.
The provision of a crucial fourth tranche of government support is dependent on the trust hitting its financial targets.
Trust chief executive Jo Williams said at the same time last year the trust was facing a £28m deficit.
The meeting was told that regular meetings are being held to monitor and take action on financial issues including the use of bank staff and the amount of cash it has to pay its bills.
