Financial Position 2016/17
These are challenging times and this will be the toughest financial year yet for ELR CCG.
The NHS receives a fixed budget from Parliament to buy health services for the entire population. For 2016/17 our allocation is £409.4million and from this the CCG is tasked with generating a 1% control total of £3.7million. This means there is circa 1% of our budget that we are not allowed to touch.
When commissioning (buying) health services the CCG tries to meet the health and wellbeing needs for the local population. We make decisions about which health services to purchase, based on these identified needs.
Like many CCGs across the country, we are in a position of having more demand on services than can be commissioned from the available budget.
The challenge faced by all organisations across the NHS, is how to spend the available budget in ways that most benefit the health of the whole population and delivers good value for money. We have set an activity plan which will meet the NHS Constitution standards for local people. However, in order to achieve this, we will have to make savings of £18m by March 2017 (about 4.4% of our total budget). Nationally the average savings for CCGs are in the region of 3.0-3.5%.
The CCG’s governing body is committed to tackling the tough financial situation by improving efficiency and getting more value from the money we spend. Our priority is ensuring we can meet our patients’ needs with high quality services. The financial situation doesn’t change that – but it does make our efforts more challenging.
By far the majority of the savings and changes we have identified will not be noticeable to patients as they go about seeking and receiving NHS care and will be related to transformation of services to reduce waste and duplication. Inevitably however, with the tough financial situation we face, there are difficult decisions that have to be made in the coming months.
All decisions will be clinically-led, evidence-based, informed impact assessments in terms of quality and equity.
We will continue to prioritise achieving the NHS Constitution standards around cancer, A&E, improving access to psychological therapies and waiting times for planned care. We will also focus on other priorities such as child and adolescent mental health services and the transforming care programme for people with a learning disability or autism.
We have also reviewed everything we spend on running our organisation. We are committed to containing these costs within the £6.9 million allocated to us. Our GPs and staff are all contributing to ideas on areas where we can improve services and save money and we are working closely with them and our partners to do all we can to meet this financial challenge head-on.
We will keep people updated on our financial position through reports to our monthly governing body meetings, which are held in public. You are all welcome to attend. Information about our meetings can be found here.