Agenda item

To consider the report of the Chief Executive, Leeds Teaching Hospitals NHS Trust and the Chair of the Citywide Directors of Finance Group which provides the Board with an updated assessment of the future financial challenge facing the city’s Health and Social Care Partnership and the immediate next steps being planned by Accountable Officers

(Report attached)

Julian Hartley presented the report of the Chief Executive, Leeds Teaching Hospitals (LTH) NHS Trust, and Chair of the Citywide Directors of Finance Group on the work done to re-fresh the analysis of the future financial challenge facing the city and actions being taken to address the situation.

Leeds has a £1.9bn per annum health and care economy but faces significant financial pressures. Previously the scale of the 5-year future financial challenge facing the city’s health and social care partnership had been estimated at £650m however an updated assessment carried out on the basis of each partners' agreed 2015/16 financial plan now showed a range of values between £627m and £931m dependent on differing assumptions. The need for a different collective approach to citywide financial commissioning, planning and delivery had been identified in order to make the most effective use of available resources. Councillor Mulherin made the point that the £8bn NHS funding investment had been front loaded whereas £10m cuts to Leeds local government funding had been frontloaded. This meant that shared place based plans must consider available resources.

To underpin this approach, a Sustainable Transformation Plan (STP) was required to be submitted to NHS England, setting out a 5 year plan to 2020/21. Importantly the NHS England planning guidance set out £1.8bn sustainability funding for NHS hospital providers in 2016/17. This funding was not expected to continue into 2017/18 and NHS England funding would be released depending on the credibility of Local Transformation Plans. Details of this and the draft STP required for 8^th February; would be brought to the 17^th March 2016 Board meeting.

The Board considered this matter in conjunction with following item on the agenda relating to the Council Funding Position (minute 60 refers). The following issues were discussed: 

·  Whether there was a desire for Leeds to consider restricting procedures where a patient’s lifestyle could affect success and recovery, as other authorities had done (the example of hip operations offered to those patients identified as obese was given). The response that clinical quality, value and recovery remained paramount was noted although it was acknowledged that there were some Trusts who were looking closely at the commissioning of minor procedures.

·  The suggestion that a mechanism should be developed to ensure that the money spent by Leeds on health and wellbeing benefits Leeds’ service providers/users; the quality of healthcare and the Leeds health economy. The Board noted the response that the Leeds Academic Health Partnership was considering the practicalities of a similar initiative.

·  The need to establish the STP quickly was recognised. The STP should reflect the engagement undertaken with service users and set out the investment required to ensure continued service delivery. The Board received assurance that the STP would address consultation, workforce engagement and detail partnership arrangements.

In conclusion, the Board acknowledged that the future financial challenge remained unclear, and that further detailed discussions were required between partners. The suggestion that a workshop be held before March 2016 to discuss the financial issues in order to inform a collaborative approach across the health and care industry was supported.

RESOLVED

a)  To note the value of the future financial challenge facing the 7 statutory partners in the city and the basis of the calculation

b)  To endorse the various actions being put in train by the Accountable Officers

c)  To request that arrangements be made for a workshop be held before March 2016 to discuss the financial issues in order to inform a collaborative approach across the health and care industry