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By Ian Dipple Friday 03 January 2014 Updated: 03/01 09:21
DOCTORS in Redditch and Bromsgrove have been ordered to draw up a financial recovery plan after missing key budget targets set by NHS bosses.
Redditch and Bromsgrove Clinical Commissioning Group was placed in financial recovery mode by NHS England as it will only deliver a £200,000 surplus this financial year, against the required £1.8million target.
The failure is due to the loss of £2.4million of income which was instead allocated to the provision of specialised services - such as blood and marrow transplantation - which they are not responsible for buying in.
The recovery plan includes delivering a one per cent surplus on the CCG’s budget for 2014/15, as well as efficiency savings of some £3million on top of recovering the money lost.
Lesley Murphy, area director for Worcestershire for NHS England, said: “The recovery plan should cover the period from 2014/15 – 2016/17 and incorporate the implications from the 2013 Spending Review. In particular, the partnership with local authorities on social care and the tighter budget constraints.”
On top of that the CCG has been dealt a further blow as despite NHS England changing its formula to give commissioners in areas of deprivation more money to tackle health inequalities, Redditch and Bromsgrove has been given standard increases in its budget over the next two years.
For 2014/15 it will receive a 2.14 per cent rise - over £3.8million - and in 2015/16 an increase of 1.7 per cent, worth a further £3.1million. But at the same time it will also lose £10million of its budget which will instead be transferred to help provide better joined up care between the NHS and social services.
Dr Jonathan Wells, chair of Redditch and Bromsgrove CCG, expressed his disappointment at the funding allocations. He has previously publicly argued Redditch should get more money as it has the largest areas of deprivation across Worcestershire, with some in the top ten per cent nationally.
Writing about the CCG’s financial position on his blog, Dr Wells said hitting the savings target would be challenging.
“Success will mean we do not have to cut NHS services, but as you would expect, we are looking at a range of potential cuts that we would have to implement if we do not achieve the required savings.”
Paul Sheldon chief finance officer for Redditch and Bromsgrove CCG, said some other groups had received larger increases because their current budgets were significantly different to the new national funding formula.
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