Issue - meetings

To consider a presentation of the Interim Chief Executive of the Partnership Trust.

As requested at the previous meeting, representatives of the Primary Care Trusts and the NHS North West will be in attendance to answer questions:

·        Nik Khashu, Assistant Director of Finance (Strategy and Performance), NHS North West;

·        Iain Crossley, Director of Finance, Economy and Market Development, NHS Western Cheshire;

·        Tina Long, Director of Strategic Partnerships and Russell Favager, Director of Finance, NHS Wirral;

·        Michael Pyrah, Chief Executive, Central and Eastern Cheshire PCT.

The Committee considered a presentation by Dr Ian Davidson, Interim Chief Executive of the Cheshire and Wirral Partnership NHS Foundation Trust (CWP). 

He explained the Efficiency Agenda whereby the NHS required ongoing efficiency with levels ranging between 3.5% and 5% over the next 3 years; this meant the same volume of service needed to be provided at less cost. CWP currently had a shortfall of around £1.5 million which impacted on the financial performance leading to an impact on its financial risk rating, ability to borrow and long term financial strategy.

He advised Members that 80% of the budget for CWP came from the 3 Primary Care Trusts (PCTs) who were the main commissioners of their services:

–        Central and Eastern Cheshire PCT – forecasting a £18 million deficit in 2009/10 and a £30 million deficit in 2010/11; had advised that it was not in a position to pay £1 million in funding in the current year to CWP as previously agreed, although half of this was likely to be found through technical adjustments currently under discussion.  Any current impact on services was not yet defined but the PCT had indicated it was looking to reduce spend on Mental Health Services on a recurrent basis and this was likely to be a figure greater than £1m;

–        Wirral PCT – currently balanced financial position but projections were deficit unless system changes introduced; work was underway with stakeholders on Mental Health Services workstream.  PCT had indicated it did not want to reduce spending on Mental Health;

–        Western Cheshire PCT – dealing with legacy issues around previous financial deficits but similar position to Wirral.  Work was underway with stakeholders on a few workstreams including dementia and alcohol services.  No indication of reduction in spend on Mental Health services.

The efficiency targets on the NHS and the financial positions of the PCTs meant services would need to be re-designed with scope to streamline and improve but service reductions could be likely in Central and Eastern Cheshire PCT’s economy.

Michael Pyrah, Chief Executive of Central and Eastern Cheshire PCT, outlined three aims that the PCT was confident it could achieve:

      Get the recurrent deficit as low as possible in the current year;

      Achieve non recurrent savings of between £10 -12m in the current year;

      Return to recurrent balance by March 2011.

The pressure on the PCT budget was due to various factors including increased spending on Acute Care and Specialist care and NHS Continuing Care.

During the discussion the following issues/questions were raised:

      Western Cheshire PCT had inherited a brought forward deficit from its predecessor organisations and had a Turnaround Plan which had previously resulted in the Trust receiving a one-off non-repayable loan of £21m from the Strategic Health Authority (SHA) – was the SHA planning to provide similar financial assistance to Central and Eastern Cheshire PCT?  In response, Nik Khashu, Assistant Director of Finance (Strategy and Performance) NHS North West, explained that the SHA was not planning to provide  ...  view the full minutes text for item 19