One of the Trust's ten strategic objectives is to achieve sufficient financial prosperity to enable services to be sustained and developed. This means we want to:
- Ensure that the organisation is financially viable over the short, medium and longer term
- Improve the value for money of the Trust's activities and services
- Optimise our cash flow of the organisation in support of healthcare delivery
Although the Trust has delivered its financial targets in each of the last five years, sometimes this has been done with financial support from our partners in Herefordshire and the wider West Midlands health economies.
Financial achievements in 2014/15
As in the previous financial year, the last twelve months has seen Wye Valley NHS Trust face significant financial challenges. Our main achievements during the year were as follows:
- Financial break even - we delivered financial break even. This was achieved through the receipt in-year of £12.7 million of non-recurrent income funding from NHS England.
- Delivered a surplus - the overall financial position was delivered in accordance with the plan and the financial target agreed with the Trust Development Authority (TDA) during the year. The table below indicates that, once factors relating to the impairment of assets are accounted for, the Trust delivered a surplus.
- Delivered a Cost Improvement Programme (CIP) of £5.5m during 2014-15. The CIP comprised a number of separate work streams relating to estates utilisation and extra contract income associated with Urgent Care transformation and Planned Care productivity improvements.
- £2.5m programme of capital investment delivered. The schemes included expenditure on developing the Clinical Assessment Unit (CAU), work on improving the maternity health environment and expenditure on upgrading health records.
The Trust generated income of £183.637m during 2014/15. The majority of the income was derived from Herefordshire Clinical Commissioning Group.
What we spent on services
Salaries and wages paid to permanent and temporary staff, including those employed through agencies, totalled £115.406m. Expenditure on goods and services amounted to £63.39m and the net finance costs (interest received and payable plus other gains
and losses) totalled £5.2m. Trust staffing costs have risen compared to 2013-14, due in part to an increase in activity but also in response to the quality agenda necessitating an investment in clinical staff.
What we spent on buildings and services
In addition to revenue income and operating expenditure, the Trust has spent £2.5m on capital purchases. This spend included: the improving birthing environment project (£313k); completion of works associated with the Clinical Assessment Unit (£273k) as well as the replacement of a range of critical medical and other equipment (£663k). The Trust has also completed the implementation of the IT system for maternity and upgraded PC systems to Windows 7
Looking to the future
The Trust has set a deficit budget for 2015/16. As a result the Trust will require external cash support in order to meet the excess of costs over income during the year. This is in addition to the delivery of a CIP totalling £5.6m.
In previous financial years the Trust has received external support in the form of non-recurrent income in order to break even. This option is not open to the Trust in 2015/16 and as a result the Trust’s plans include external cash support in the form of Public Dividend Capital for revenue support and repayable loans for capital expenditure.
Items of spend over £25,000
Director of Finance and Information
Wye Valley NHS Trust
The County Hospital
Telephone: (01432) 364134