ITEM 2 East and North Herts Hospitals NHS Trust Presentation Historical financial challenge • Previous financial performance had not been good, but recovery now achieved.
Financial Recovery – 2006/07 • SHA set target deficit at £8m – tightened to £7.5m in November 2006 • Trust had to achieve £9.5m savings out of total £275m budget • £175m pay • £100m non-pay • Savings equalled 3.5% of budget in-year
Delivering the 2006/07 challenge • Ended 2006/07 with £1.5m deficit - £6.0m better than target • Savings plans delivered £13.8m, plus further technical adjustments of £2.2m • £22.4m historical debt recalibrated through national review • Acknowledged Hertfordshire health economy had reduced spend already by this amount • Historical debt to be repaid now £1.5m
Financial Prospects for 2007/08 • Plan is to deliver £4.5m surplus • Assumes further savings of £10.6m in-year • If £4.5m surplus achieved at year-end: • Repays £1.5m historical debt • Improves Trust’s cash position • Provides firm basis moving forward • Allows £2.5m carry forward into 2008/09
Financial prospects for 2008/09 • Plan is to deliver £2m surplus • New service developments will include: • Investment in nursing staff - £2m • Investment in HCAI - £1.7m • Introduction Bowel Cancer Screening • Delivery 18 weeks wait times