Council of Governors Meeting Mike Stevens Director of Finance & Business Development 16 th January 2008 (Agenda item 6)

Contents Current financial position 2007/8 Outlook for 2008/9 Strategic investment fund Capital scheme update

Current position 2007/8 Position to end of November 2007 –I&E variance to budget £0.2m adverse –CRES achieved 59% of brought forward target and 23% of new year target –Cash balance £37.0m –Financial risk rating - 5

Current position 2007/8 Forecast outturn –Forecast surplus £7.3m against plan of £6.5m –Cash balance £17.9m against plan of £9.2m Forecast underspend on capital carried forward to next year –Financial risk rating - 4

Outlook for 2008/9 Operating framework for 2008/9 Tariff prices published PBR rules New model contract

Operating Framework 2008/9 Service priorities –Improving cleanliness and reducing HCAI –Improving access by meeting 18 week RTT target and improving access to GP’s –Keeping adults and children well –Improving patient experience, staff satisfaction and engagement –Preparing to respond in a state of emergency

Operating Framework 2008/9 Enabling Strategies –Choice, information and personalisation –World class commissioning –Practice based commissioning –Specialised services commissioning –National contract –Military personnel –System management –Provider development –Leadership and workforce –Information

Tariff and PBR for 2008/9 Tariff updated to use 2005/6 activity/cost No major changes re inclusion/exclusion No major impact on RD&E Changes to specialist services top-up Loss to RD&E of up to £1m Prices uplifted by 2.3% net of a 3% cash releasing efficiency savings

National Model Contract A development on interim 2007 model Key issues –Penalty regime –Information delivery –Activity constraints No impact on RD&E for 2008/9

Strategic Investment Fund Implementation well in hand –600+ new beds being delivered –New ‘discrete’ theatre gowns –Patient chairs on wards, outpatients etc –Productive ward –Concourse development

Capital schemes update Phase 4 – complete and operational ICU expansion – complete and operational Endoscopy – building work complete, installation of washer complete Linear Accelerator – building work complete spring 08, install first LINAC, install second LINAC autumn 2008 Emergency hub – option appraisal underway, business case to Board Feb/Mar 08