SCARBOROUGH Hospital’s finance director has spoken about the “challenging” year ahead at a board meeting.
Bernard Chalk presented a report on the trust’s finances to the end of February and also spoke about what the board can expect in 2011/12.
During a meeting at Scarborough Hospital he explained that after 11 months of the financial year, the trust was reporting a surplus of £810,000.
Based on this current position, Mr Chalk stated that the trust is on track to deliver its latest loan repayment of £1.89 million to the Department of Health.
He added that the capital budget for the 2010/11 had been £5.317 million and the latest forecast shows a year-end spend of £4.72 million, which represents a small underspend.
The report showed that in February, non-pay budgets were underspent by £52,000, but pay budgets showed an overspend of £67,000.
The main areas of capital spending were highlighted as the new Maple Ward, which cost £1.48 million, and the new clinical skills lab, at a cost of £0.46 million.
Mr Chalk said: “We will achieve a break-even position, which is our statutory duty, as well as delivering the £1.89 million surplus for the loan repayment.
“This represents a real achievement.”
Trust board chairman Sir Michael Carlisle asked Mr Chalk to give the board an overview of the trust’s financial position for the year ahead.
He explained that it would be a difficult year, not just for the trust but for the NHS in general.
Mr Chalk said: “The norm for an acute hospital will be to improve its efficiency by three per cent and for 2011/12 this will go up to four per cent.
“We are looking at delivering five per cent cost improvement plans for 2011/12 and would expect by the end of April to be able to prepare a plan for the trust.”
He continued: “It will be a very challenging year for NHS organisations as nationally the NHS has to make a £15 billion saving over the next four years.
“That will involve a significant amount of service redesign. It will be a challenging year but one we look forward to.”