Key elements of the contract discussions will include:- Contracting Principles This will ensure clarity on organisations and peoples – expectations and roles. Also to ensure consistent understanding of the national commissioning guidance. Planning Guidance Agreement on what the principles in the NHS Commissioning – Guidance (Everyone Counts) means for both commissioners and providers. Contract Documentation Monitoring on contract documentation updates / versions – and what is required for completion from both organisations. Financial Performance Process to forecast outturn. – CQUIN Process to agree CQUIN Schemes. – Quality KPIs Process to agree Quality KPIs. – Commissioning Intensions / Service Development Improvement Plan (SDIP) – Process to agree intentions and SDIP. CIPs Agreement of the Trust CIPs. – Financial Plan Outline 2013/14 Appendix A – The forecast outturn for 2013/14 is detailed in Appendix A together with the key movements (bridge analysis) currently assumed for this year’s finance and activity plan. The starting point is the 2012/13 forecast outturn position stated by divisions at month 6. Each column represents a financial impact to our income or cost base from the 2012/13 outturn position. A summary of each of these impacts is described in the following subsections:- Technical Changes (Technical Deficit) Appendix A – There are three non-cash accounting changes to outturn, the impact of each being disallowable when the DH monitors the underlying performance of the Trust: Impairments - The value in 2013/14 is currently estimated at zero (£202k in 2012/13). IFRS (PFI) - The in 2013/14 is estimated as a technical deficit of £485k. (Under IFRS, the Trust was obliged to change the way it accounted for the PFI and these changes are discounted for Trust monitoring purposes). Donated asset transactions The value in 2013/14 is estimated to be a £111k – (net) technical deficit. Tariff Impact (Loss of £3.3m) Appendix A – As part of the national efficiency requirement of 4 per cent tariff payments have been deflated by on average 1.3 per cent. Applying this national assumption would mean a financial income reduction of c£3.285m for StHK. The Trust is currently working through in detail the local impact of this based on our patient type which will be available for March final papers. The key points from the 2013/14 PbR guidance are:- Net price adjustment -1.3 per cent. Mandatory maternity pathway payment system.
Key elements of the contract discussions will include:- Contracting Principles – This will ensure clarity on organisations and peoples expectations and roles. Also to ensure consistent understanding of the national commissioning guidance. Planning Guidance – Agreement on what the principles in the NHS Commissioning Guidance (Everyone Counts) means for both commissioners and providers. Contract Documentation – Monitoring on contract documentation updates / versions and what is required for completion from both organisations. Financial Performance – Process to forecast outturn. CQUIN – Process to agree CQUIN Schemes. Quality KPIs – Process to agree Quality KPIs. Commissioning Intensions / Service Development Improvement Plan (SDIP) – Process to agree intentions and SDIP. CIPs – Agreement of the Trust CIPs. Financial Plan Outline 2013/14 – Appendix A The forecast outturn for 2013/14 is detailed in Appendix A together with the key movements (bridge analysis) currently assumed for this year’s finance and activity plan. The starting point is the 2012/13 forecast outturn position stated by divisions at month 6. Each column represents a financial impact to our income or cost base from the 2012/13 outturn position. A summary of each of these impacts is described in the following subsections:- Technical Changes (Technical Deficit) – Appendix A There are three non-cash accounting changes to outturn, the impact of each being disallowable when the DH monitors the underlying performance of the Trust: Impairments - The value in 2013/14 is currently estimated at zero (£202k in 2012/13). IFRS (PFI) - The in 2013/14 is estimated as a technical deficit of £485k. (Under IFRS, the Trust was obliged to change the way it accounted for the PFI and these changes are discounted for Trust monitoring purposes). Donated asset transactions – The value in 2013/14 is estimated to be a £111k (net) technical deficit. Tariff Impact (Loss of £3.3m) – Appendix A As part of the national efficiency requirement of 4 per cent tariff payments have been deflated by on average 1.3 per cent. Applying this national assumption would mean a financial income reduction of c£3.285m for StHK. The Trust is currently working through in detail the local impact of this based on our patient type which will be available for March final papers. The key points from the 2013/14 PbR guidance are:- Net price adjustment -1.3 per cent. Mandatory maternity pathway payment system.
STHKNHST13003FinancialOutlookFC201314JanBoard.docx