The Financial Stability Pillar has four programmes predominantly focusing on how we achieve both short term and long term financial balance for the organisation.
Mission 1 – Achieve financial targets
Each year, the Trust has number of duties, or targets, it is required to achieve as a measure of how cost-effectively we treat patients. This is also one of the measures used in assessing how ‘Well-Led’ the Trust is.
In recent years, through the efforts of staff across the hospital, we have managed to reduce the overspend against our budgets. However, there is still more we have to do.
Our focus over the next two years is:
- Reimbursement of COVID-19 costs
- Management of staff costs
- Deliver income and expenditure targets
- Deliver capital targets.
Mission 2 – Improve value for taxpayers’ money
The Trust has a legal duty to spend public money wisely. Getting value for every pound we spend ensures that the maximum amount of taxpayers’ money available to us each year is spent on patient care. One of the ways we can do this is by comparing our costs with those in other organisations. We can also reduce our costs and improve the quality and safety of the care we provide to patients by reducing the range of different equipment and products we use in delivering care:
- Deliver Cost Improvement Programmes
- Benchmarking of services
- Product standardisation
- Commercial plan.
Mission 3 – plan our investments efficiently
As part of delivering value for money, we will properly plan all investments to ensure that we target our funding at the highest priorities, with clearly defined benefits to patients and their care. We will develop:
- Business cases for quality and improvement
- Backlog maintenance
Mission 4 – System working
As part of the work across our health and social care system, we will work with partners to identify opportunities to improve service quality for our population, ensuring that as much of the ‘Medway pound’ as possible is spent on the direct provision of care to our people. In the Trust, we will contribute to this system work through our:
- A review of our portfolio of services.
Our short-term strategy is one of achieving the breakeven target for 2020/21 in line with the NHS revised funding methodology put in place in light of the current pandemic. In the longer term, we will transform our Trust so that it can achieve long term financial viability by breaking even without the need for a grant or loans.
Continue to stabilise our financial position by meeting the financial targets agreed with NHS England/Improvement each year.
In each of the subsequent financial years we will reduce the financial deficit by £11million so that by the end of year four the Trust will be at breakeven.
How we will achieve this:
- Fully engage clinical staff in the management of the Trust’s financial resources at a number of different levels.
- Develop a robust fully approved long term financial plan founded on a robust portfolio of services.
- Negotiate a contract settlement that ensures that the Trust is fully funded.
- Minimise additional costs through an effective business case and business planning process.
- Prioritise the capital programme to meet clinical need whilst ensuring that asset failure does not constrain the meeting of the key objectives.
- Put in place a series of efficiency projects that will reduce unwarranted variability in performance both within and outside the Trust, and produce a steady cost reduction
- Benefit from the ideas coming from the Medway Innovation Institute.
- Develop commercial projects that will contribute to the financial position.