Shropshire health bosses expect deficit to reach nearly £27 million

It is £2.8m worse than Shropshire Clinical Commissioning Group (CCG) had planned for last month – and much higher than the £19.4m it had predicted previously.

Health bosses say it is due to ‘additional cost pressures identified for continuing and complex healthcare services’.

A report to Shropshire CCG’s governance board, which meets on Wednesday, sets out the CCGs financial position to the end of February.

It says accountancy firm PwC was invited to “conduct a financial deep dive” last month in order to review the CCG’s finances.

The report, which has been written by interim deputy chief finance officer Tony Uttley, said: “This is intended to support delivery of a robust year-end position and associated working papers for the external auditors to review.

“The cumulative financial position for 2017/18 shows a forecast deficit of £59.5m which includes £32.6m brought forward from previous years.

"The overall financial position to February 28 is forecasting an in year deficit of £26.903m.

"The position has deteriorated by a further £2.851m since month 10, primarily due to additional cost pressures identified for continuing and complex healthcare services.

"The deficit reflects the gap between the CCG’s current plan and the excess of expenditure over resource allocation."

It says there have been a number of "unforeseen pressures" since the start of the 2017/18 financial year, which were not included in the financial plan.

Health bosses said a huge rise in the price of drugs and challenges within the out-of-hours GP service Shropdoc are among the reasons behind the escalating deficit.

Last month, finance chiefs said the CCG also hoped to use money in its reserves, amounting to about £2 million, to help bring the total deficit down.

The CCG had been expected to sign off on its finance plan and budget for 2018/19 at a meeting last month but a report to the board said it was ‘not yet possible due to a number of outstanding issues that might materially impact on the CCG’s ability to deliver its plan’.

It is being brought back to the meeting on Wednesday, which will be held at The University Centre, Guildhall, Frankwell, Shrewsbury, at 9.30am.

The meeting is open to members of the public.