Trust Board papers - University Hospital Southampton NHS ...
Trust Board papers - University Hospital Southampton NHS ...
Trust Board papers - University Hospital Southampton NHS ...
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UNIVERSITY HOSPITAL SOUTHAMPTON <strong>NHS</strong> FOUNDATION TRUSTFinance ReportReport to: <strong>Trust</strong> <strong>Board</strong> - 18 th December 2012Report from:SponsoringExecutive:Purpose of Report:Review History toDate:Andy Wood, Deputy Finance DirectorAlastair Matthews, Finance Director and Deputy CEOTo update <strong>Trust</strong> <strong>Board</strong> on the financial, activity and savings performance of the <strong>Trust</strong>for November 2012.The <strong>Trust</strong> <strong>Board</strong> has previously agreed the income and expenditure budgets for2012/2013 with a full year plan pre-impairment surplus of £6m.RecommendationThe <strong>Board</strong> are asked to note:(1) In November the <strong>Trust</strong> has delivered a pre-impairment surplus of £926k, £6kbetter than Plan although the cumulative position is a surplus of £3,278kwhich is £196k worse than Plan.(2) Cost Improvement Programmes (CIPs) delivered were cumulatively £1.0mbelow Plan, which is phased based on a historic delivery profile. Thisrepresents a £0.1m deterioration in November. The target is fully identified at30 th November although a significant element remains classified as amber.(3) Divisions and headquarters overspent against expenditure budgets by£1.8m, exacerbated by a £0.9m overspending on reserves and corporatebudgets. This was largely offset by activity above plan with income estimatedto be £2.5m above plan in the month.(4) The November position is based on a number of specific assumptions onincome.SummaryThe <strong>Trust</strong> delivered a pre-impairment surplus of £0.9m in November, which was inline with Plan. EBITDA was £3.3m compared to a Plan of £3.6m. Cumulativelypreimpairment surplus is below Plan by £0.2m.Cumulative <strong>NHS</strong> Clinical Income at month 8 is estimated to be £3.4m above plan.A phased budget is used to reflect expected actual activity more accurately thanusing a straight line, unphased approach. The budgets for <strong>Southampton</strong> City andHampshire were adjusted with budget brought forward to the first quarter of thefinancial year, to reflect the expectation that significant activity management forthese PCTs would not be achieved during the first quarter.Actual income reported at month 8 consists of cumulative activity to month 7 asreported in SLAM plus an estimate for month 8 which extrapolates the first 7 months'income and then applies the appropriate phasing as a proxy for actual activity inmonth. Additional income has been anticipated for clinical activity which started inMonth 7 and would therefore not be recognised in this extrapolation, as well as earlydata indicating that spells are likely to be higher than usual.Provisions have been made for likely impacts from fines for 30 day readmissionsand 18 week breaches, a technical adjustment regarding the method for calculatingMRET, and provisions for the risk of partial non-achievement of C Diff and CQUIN.1