Hospital trust misses financial target
An acute hospitals trust in Shropshire has for the first time this year failed to hit its monthly financial target as another potentially costly strike of resident doctors looms.
But finance chiefs at Shrewsbury & Telford Hospitals NHS Trust say they have planned for ‘unexpected’ costs and it remains on track overall to deliver its financial plan by March 2026.
Papers being considered by the trust board at its meeting on Thursday (Nov 13) say that it fell £1.3million off its plan in September.
Money chiefs at the trust are calling for “maximum pressure” to get to grips with ‘workforce costs’.
The resident doctors’s strike in July cost the trust £510,000 but its acting finance director, Adam Winstanley, says the trust is prepared if the five day strike begins as planned on Friday (Nov 14).
“We knew that achieving our targets would become increasingly challenging as we entered the winter months and approached the end of the financial year,” said Mr Winstanley.
“We have planned for this, including being prepared for unexpected costs such as industrial action.”
Mr Winstanley says multi million pounds have been invested in additional services that “will help us to deliver improved urgent and emergency care for patients this winter and long-term will also deliver financial balance.”
Mr Winstanley says the trust’s cost improvement programme “remains on track”
He adds that SaTH has delivered £18.3m of efficiencies so far, which is more than this time last year.
“We will continue to focus on our transformation work, including reducing our reliance on agency staff and our digital investment.”
Mr Winstanley admits it “will be challenging” but “we have plans in place to deliver our financial plan by March 2026.
“We will not compromise on patient safety, and I would like to thank our staff for everything they are doing to deliver safe and compassionate care to our patients and their families.”
The trust’s finance assurance committee has called on the board’s executive to “apply maximum pressure” to ensure targets for delivering £41.4million of savings are made.
Board papers say that the trust has used £30.85million so far out this year out of a £45million Government ‘deficit support’ package.
The report says the “level of support” left to the end of the year “reduces and there is even greater pressure on performance.
“The incremental effect of the pay award and the premium payments for temporary staffing are the main causes of the deficit to plan.
“In September we reported the need to “bridge a gap” of £9.7m to achieve break-even by the end of the year.
“This has now been mitigated down to £2.4m but is dependent upon the achievement of additional savings on bank (staffing) expenditure of £4m.”
