Shropshire community hospital bosses must find £4 million new savings

Shropshire Community Health NHS Trust is in the process of making £2.5 million cuts this year from a budget of about £74 million. But further savings of £4.2 million by the trust will need to be found in 2014/15.

Details are revealed in a report to the trust's board ahead of their meeting in Telford on Thursday. The report said meeting next year's target would be a "significant challenge".

"Contract negotiation with commissioners is at an early stage and cost improvement programme plans are not yet developed," it said.

"This position is expected to improve as these issues are progressed over the coming weeks.

"However, this presents a significant challenge, especially when considered alongside a need for transformational change and the countywide review of hospital services, which will not impact significantly in 2014/15."

The report also revealed that "just over 50 per cent" of the intended financial savings for this year have been identified.

But Jan Ditheridge, the trust's new chief executive, said that the organisation was "on plan" to deliver the required cuts this year.

"It is never easy. It has basically this year been a range of good house-keeping – getting costs down and making sure we don't overspend," she said.

She said meeting next year's target would be challenging and would also depend on how changes are being made to other NHS organisations locally.

"You can't find that money down the back of the sofa. This is going to be about doing things differently," she said.

"We have a number of ideas of how we could do that. But we have to be mindful of the clinical services review and what other partners are doing so that we don't do anything in the short-term that would scupper any long-term strategy."

Proposals for how the savings will be made are due to be drawn up by June.

The trust is responsible for community-based health services and manages hospitals in Bishop's Castle, Bridgnorth, Ludlow and Whitchurch.