Shropshire hospital chiefs confident of finding £3 million savings
Trust chiefs in charge of Shropshire's two main hospitals say they are confident they can find £3 million of savings to meet deficit targets.
At a meeting of Shrewsbury and Telford Hospitals NHS Trust's board it was outlined to members that the forecast for the current financial year is a predicted budget deficit of £18.19 million.
However, Neil Nisbett, the trust's finance director, said he believed the organisation could reach its "stretch target deficit" of £15.2 million if it implements savings measures by the end of the financial year.
Board members heard that plans for the savings include £600,000 on nursing activities, including recruitment of nurses from the Philippines, and avoiding the use of tier five agency staff, £500,000 from a revaluation of the trust estate, a £1 million capital-to-revenue transfer, and a further £800,000 which needs to be identified.
The trust's performance report stated: "In delivering the forecast out-turn deficit of £18.19 million, expenditure is assumed to increase by £774,000 per month over the remaining five months of the year.
"The planned deficit for the year of £17.2 million becomes possible if expenditure grown (as compared with the existing average monthly run rate) can be restricted to £576,000 per month. To achieve the stretch target expenditure growth over the remaining five months of the year needs to be restricted to £176,000 per month."
Peter Latchford, trust chairman, said: "As it stands with no intervention, our deficit is worse than anticipated but there is confidence we can get back to the stretch target."
It was also confirmed that 30 nurses from the Philippines will join the trust in January, which will go some way to reducing the use of agency staff.
The report delivered by Mr Nisbett highlighted that spending on agency staff had reached a record level with the trust, amounting to £1.6 million in October.
The figure had increased by £360,000 from September.
It stated: "Agency spending in the month of October remained high, amounting to £1.620 million, the highest level recorded by the trust. As compared with the opening five months of the year, agency spending in the month of October increased by £360,000 and reflects a shift in the mix of medical staff from substantive to agency staff."
Simon Wright, trust chief executive, said new nurses from the Philippines would help the organisation reduce its agency costs.
He said: "I think the fact we have appointed more nurses because of the Philippines recruitment process supports a reduction in our agency use."
Mr Latchford also paid tribute to the trust's staff for their efforts.
He said: "We dwell on the negatives but given the situation we are working under it is clear the team is getting extraordinary results."