April 2005: Efficiency plan developed to balance the books and deliver service standards. May 2005: (already slightly in deficit) proposed savings of £644,000 agreed. Income opportunities of up to £8.9million identified – mostly from the new treatment cen
April 2005: Efficiency plan developed to balance the books and deliver service standards.
May 2005: (already slightly in deficit) proposed savings of £644,000 agreed. Income opportunities of up to £8.9million identified - mostly from the new treatment centre.
Autumn 2005: Treatment centre opens, but £5million loss from lack of referrals. Recovery plan of £12.4million savings, including one-off capital receipts of £5million from sale of nurses' accommodation identified to balance service overspend of £3.2million.
February/March 2006: Recovery plan not fully deliverable. Projected end-year deficit £3.2million. Risk of further £3million shortfall from non-sale of nurses' residences. Executive charged with finding £7million savings plus £2.6million additional income in 2006/07. Orthopaedic referrals from Northampton PCT reduced deficit but year-end shortfall now estimated at £7.7million.
May 2006: 2006/07 deficit forecast at £20million - including £5million underlying, £8million repayment from previous year and £6.5million too much taken back by Department of Health under "payment by results" scheme because of Hinchingbrooke returns error.
June 2006: Plans to save £3.4million include up to 200 redundancies. Consultants KPMG engage to verify recovery plan achievable without impact on services. Increased income of £1.4million from Bedford.
July/August 2006: KPMG verifies most identified savings as achievable without impact on service, but some not. Year-end deficit £33million on worst case scenario. Board says £23million realistic. SHA strategic review starts.
October 2006: Year-end forecast revised to £29.9million, still believed robust and including failure to sell residences.