Issue - meetings

The Central and Eastern Cheshire Primary Care Trust (PCT) has produced a Healthcare Sustainability Plan 2009/10.  The Plan shows how the PCT will respond to a number of significant financial challenges during the current year.  The challenging financial position has arisen mainly as a result of purchasing increased levels of acute hospital activity and also increased expenditure on NHS Continuing Care.  The Plan sets out a sustained focus on finances while delivering improved quality through innovative solutions in all areas of healthcare.

The Plan is attached for Members’ information and comment.  Fiona Field, Director of Governance and Strategic Planning at the PCT, will be present at the meeting to introduce the Plan and answer any questions.

Fiona Field, Director of Governance and Strategic Planning, at the Central and Eastern Cheshire Primary Care Trust, briefed the Committee on the PCT Healthcare Sustainability Plan 2009/10.  She explained that the PCT had a statutory responsibility to balance its budget and, although the PCT had inherited a deficit when it first came into being, it had maintained a balanced budget ever since. 

The PCT was now facing financial difficulties due mainly to the significant increases in levels of activity in secondary health care and also the increased amount of NHS Continuing Care provided.  The PCT’s current financial situation was not due to the national credit crisis.

The PCT had developed the Sustainability Plan with the intention that it would not be a “quick fix” but a sustained focus on finance, with a series of principles adopted in setting the 2009/10 budget:

      The budget was set at a balanced position with a small surplus as required by the NHS;

      All contracts with key providers had been agreed and signed off and activity agreed at the outturn (ie end of last year’s position);

      No further growth in activity above the 2008/09 level had been assumed;;

      The full estimated impact of Payment by Results had been included;

      Inflation had been added to all contracts;

      Funding for new developments had been kept to a minimum and only included the Elmhurst intermediate care facility, national specified costs to Specialised Services and the costs of the Leighton Hospital Urgent Care Centre;

      A reduction in some budgets including prescribing and PCT infrastructure costs.

The Plan set out a number of specific cost reductions that the PCT was confident would ensure services could be delivered and improved within allocated resources.  However, there was a Contingency Plan setting out changes that could be implemented if further budget savings were required.  A number of the proposed changes would require a notice period and formal consultation.

During discussion of the item the following issues were raised:

      The reduction of high cost out of area placements was welcomed;

      The reduction in contract cleaning hours related to the PCT’s offices only;

      Reduction in prescriptions would be achieved by the introduction of an IT system whereby GP’s attention would be drawn to cheaper alternative drugs that had the same outcomes;

      The proposed new premises at Scholar Green would not progress at the moment;

      The pilot Joint Equipment Retail service with the Local Authority was to be evaluated to assess its effectiveness in view of the increased costs of the service.

RESOLVED:  That the PCT Sustainability Plan be noted.