PAPER B

Purpose : for information

Committee:     PARTNERSHIP BOARD FOR HEALTH AND WELL-BEING

Date:               13 SEPTEMBER 2001

Title:               FINANCIAL POSITIONS OF THE ISLAND HEALTH & SOCIAL CARE ORGANISATIONS

                       JOINT REPORT OF THE CHIEF EXECUTIVE OF THE IW PRIMARY CARE TRUST, THE CHIEF EXECUTIVE OF THE ISLE OF WIGHT HEALTHCARE NHS TRUST AND THE DIRECTOR OF THE SOCIAL SERVICES AND HOUSING DIRECTORATE

BACKGROUND

The following summaries are provided to give Board members information about the current financial position of the Island’s health and social care organisations.

ISLE OF WIGHT PRIMARY CARE TRUST

Although there is a general feeling being given that there are substantial sums being given to the NHS, much of this is being used to catch up on previous problems. The unprecedented increase received this year by the Island barely met cost pressures already in the system. Indeed, for the Island this has resulted in a deficit from the outset. The deficit for this year is around £3.3 million and for the following year a little under £5 million.

Underlying deficits and lower priority cost pressures cannot be met and rather than a period where services can be developed and expanded, the health organisations on the Island are seeking to make efficiencies in services to live within the means available. It is expected that even given this we will need to make reductions in services to balance the books. As such, the NHS organisations will be seeking to determine where it is possible to make savings without damaging access to care for those who need it.

ISLE OF WIGHT HEALTHCARE NHS TRUST

In the context of the points made by the Primary Care Trust, there have been significant pressures on the service this year with, for example, medical emergencies up over 13%. The restricted spending by Social Services on residential and nursing homes has increased the number of beds blocked from around 5 last year to over 20 now. The combination of these factors has reduced available beds for elective operations with a substantial increase in cancellations as a result.

To meet waiting list and other access targets, the Trust has already incurred substantial additional costs. Over £400,000 overspent for the first 4 months to July, the forecast to the end of the year is a deficit of £860,000. This does not take into account an estimated additional £750K needed to meet all access times.

SOCIAL SERVICE AND HOUSING DIRECTORATE

The financial position for the Social Services and Housing Directorate (as at the end of July 2001) is a projected overspend for the year of £892,000 on a net revenue budget of £24.6 million. The impact of the measures to control the overspend in 2001/02 introduced in July 2001 are beginning to be felt. Cost pressures for 2002/3 will include increased fees for residential and nursing homes, impact of new responsibilities to residents with preserved rights, limits to income from non-residential care services, demographic changes for over 65s, impact of nursing care being purchased by Health and increased use of private foster care placements. So far these cost pressures are not fully costed, but will exceed £1million for 2002/3.

Contacts:

David Crawley, Chief Executive, IW Primary Care Trust ( 535456

Graham Elderfield, Chief Executive, IW Healthcare NHS Trust ( 524081

Charles Waddicor, Director of Social Services and Housing ( 520600

D CRAWLEY                         G ELDERFIELD                                 C WADDICOR

Chief Executive                      Chief Executive                                  Director of

IW Primary Care Trust           IW Healthcare NHS Trust                  Social Services & Housing