Issue - meetings

Ian Davidson, Interim Chief Executive of the Cheshire and Wirral Partnership NHS Foundation Trust, will verbally update the Committee on the following matters:

      The impact of the current financial climate;

      Emergency management action undertaken in relation to Bollin Ward, Macclesfield;

      Learning Disability Supported Housing Network – transfer of contract to three providers for Congleton, Macclesfield and Central Cheshire/Knutsford;

      Consultation by the Partnership Trust and the Primary Care Trusts in relation to the eligibility criteria for health respite care;

      Current developments – Greenways, Macclesfield, new build at Wirral and relocation of alcohol services in Wirral.

The Committee considered a verbal update report from Dr Ian Davidson, Interim Chief Executive of the Cheshire and Wirral Partnership NHS Foundation Trust on the following matters:

Impact of the current financial climate

Ros Preen, Director of Finance, briefed on the current financial position.  She explained that Foundation Trust status had been successful for the Trust for various reasons in that it had enabled investments to be made, enabled greater engagement through membership, greater focus on longer term planning and contracts that were “legally” binding. 

There were a number of key financial drivers impacting on the Trust including an on-going driver for efficiencies and a reduction in resources for the Health Services.  It was also important to note that Payment by Results did not apply to mental health and that the service was very staff intensive, more so than in the acute sector. 

The Trust was planning efficiency savings but it would not be possible to meet these by back office savings alone.  There were increasing costs in meeting continuing care needs and specialist services.  Commissioners’ funding issues would impact on providers who would be expected to show increasing Value for Money with a risk that funding could be reduced.  The Trust would need to respond quickly in such cases.

Dr Davidson explained that demand for the Trust’s services had increased due to the growth in the older person’s population, with two major mental health issues affecting older people – dementia and depression.  For most people care in their own home was most appropriate with support from community services but some would need hospital provision so it was important to have the correct mix of both types of care.

He outlined that 2 of the Primary Care Trusts that were major commissioners of the Trust’s services were currently in financial balance – Wirral and Western Cheshire – but Central and Eastern Cheshire PCT was predicting a financial overspend if remedial action was not taken and had devised a Sustainability Plan to address the financial situation.  As a result of these difficulties the Central and Eastern Cheshire PCT had advised the Trust that they would not be able to pay £1m previously agreed and this was currently under discussion between the PCT and the Trust.

The Trust did not own buildings nor was it given rental funding.  Commissioners would determine a Mental Health Programme Budget and would then commission services from the Trust and other providers. 

Emergency Management Action

Dr Davidson briefed Members on a Trust Board decision to temporarily close Bollin Ward, Macclesfield Hospital.  This was due to the Trust spending more on delivering mental health services in Central and Eastern Cheshire PCT than it received in income from the PCT.  The level of funding from the PCT had been an issue for several years and the PCT was committed to resolving this but in the meantime the Trust could not afford to overspend alongside the efficiency savings it was required to make.  The closure of Bollin Ward was  ...  view the full minutes text for item 10