Trust Board papers November 2012 - Barking Havering and ...

1. EXECUTIVE SUMMARY
Monthly I&E Run rate
m
£
43.0
41.0
39.0
37.0
35.0
33.0
31.0
29.0
Month 6 ‐ Monthly Run Rate Trend
1 2 3 4 5 6 7 8 9 10 11 12
Incom e Exp net of Blue/Green/Amber CIP Expenditure Further red CIPs required to m eet forecast
Trust I&E Summary (+ve variances = favourable, -ve = adverse)
2012/13 In Month (£'000) 2012/13 Year to date (£'000)
2012/13 2012/13 Foreast (£'000)
2011/12
2011/12 YTD Annual
Actual £'000 Var £'000 Var % Actual £'000 Var £'000 Var % Actual £'000 Budget £'000 Actual £'000 Var £'000 Var % Actual
(35,508) 1,296 3.79% Income (209,703) 2,138 1.03% (198,584) (413,055) (420,630) 7,575 -1.83% (419,121)
Expenditure
24,509 (159) -0.65% - Pay 147,555 (571) -0.39% 144,367 292,971 297,334 (4,363) -1.49% 291,010
11,068 (207) -1.90% - Non-pay 67,348 (527) -0.79% 66,700 132,269 133,954 (1,685) -1.27% 138,248
(656) -100.00% - QIPP/Cost Reduction (2,782) (13,710) (8,446) (5,264) 38.40%
(78) -100.00% - Contract adjmt. & reserves (189) (122) 3,088 (3,210) 2635.09%
68 198 74.33% EBITDA 5,200 (1,931) -59.07% 12,482 (1,646) 5,300 (6,946) 10,137
ITDA
1,171 37 3.08% - Depreciation 7,104 143 1.97% 7,003 14,494 14,162 332 2.29% 14,033
355 0.00% - Capital Dividends 2,132 0.00% 1,943 4,263 4,263 0.00% 3,613
1,823 21 1.11% - Net Interest 11,904 22 0.19% 11,488 23,822 23,756 66 0.28% 23,011
3,417 255 6.95% Net position 26,339 (1,766) -7.18% 32,917 40,933 47,481 (6,548) -16.00% 50,794
Impairments (2,005) (5,318) (2,005) (2,005) (1,133)
3,417 255 6.95% Net position 24,334 (1,766) -7.82% 27,599 38,928 45,476 (6,548) -16.82% 49,661
In Month and YTD Performance
Income
• Income of £35.5m in Month Six was £1.3m over the plan and is £2.1m ahead of
plan YTD. The ONEL contract is £4.8m ahead of contract YTD, less transitional
funding not agreed of £2.1m, with a forecast over-performance of £13.0m, less
£4.3m transitional funding. Over-performance has continued to increase,
particularly for non-elective activity, which is only funded at 30% marginal tariff
above 2011/12 baseline, against which the commissioners are applying a 65%
marginal tariff (i.e. net 20% tariff). The forecast expenditure position now
includes £1.8m of non-elective costs not covered by the marginal tariff.
Pay expenditure
• Pay is £159k overspent in the Month, mainly related to Medical staffing £129k
(Radiology £71k and Specialist Surgery £93k) and £78k (Acute Medicine
£128k).
• The YTD position is £571k overspent, mainly related to Medical staff £508k
(Radiology £497k) and Nursing staff £595k (mainly Acute Medicine £640k and
Midwifery £243k, partly offset by under spending in Corporate Nursing
budgets), both partly offset by under spending on Management/Admin staff of
£679k.
Non-pay expenditure
• Non-pay is £207k overspent in the Month, mainly related to Pathology £109k
and Pharmacy £136k
• YTD the overspending is £527k, mainly related to Pathology £355k and
Specialist Medicine (£224k – Oncology and Pharmacy)
EBITDA
• Earnings before Interest, Tax, Depreciation and amortisation (EBITDA) were
£0.1m negative in the Month and £5.2m negative YTD. The improved in month
position was primarily driven by income. The YTD EBITDA of £5.2m negative is
£1.9m adverse against plan YTD but has improved by £7.3m compared with
the same period last year. The forecast is £5.3m negative, £4.8m better than
last year’s outturn..
Net deficit
• The net deficit is £25.7m to date, which is £1.8m worse than plan. The forecast
deficit is £46.8m, primarily related to:
o £4.3m transitional income support not agreed by commissioners
o £1.0m increased income over-performance not agreed by
commissioners
o £1.8m unfunded cost of Non-elective activity
• The forecast assumes full delivery of £4.8m red-rated CIPs (in addition to the
£12.9m CIP rated as blue/green/amber, making a total of £17.7m)
Add back - Impairment 2,005 2,005 2,005 1,133
121 (221) IFRS reversed (380) (221) (1,202) (759) (443) (882)
3,538 34 Net against control 25,960 (1,987) 39,731 46,722 (6,991) 49,912
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