Agenda item

To consider the report of the Leeds Health and Care Partnership Executive Group (PEG) which provides an overview of the financial positions of the health and care organisations in Leeds, brought together as one single citywide quarterly financial report

The Board considered the report of the Leeds Health and Care Partnership Executive Group (PEG) which provided an overview of the financial positions of the health and care organisations in Leeds, brought together as one single citywide quarterly financial report.

The report provided a financial ‘health check’ to clarify where the current and expected financial pressures were in the local health and care system. This gave the Board an opportunity to direct action to support an appropriate and effective response as part of the Boards role in having strategic oversight of both the financial sustainability of the Leeds health and care system; and of the executive function carried out by the Leeds Health and Care Partnership Executive Group.

Bryan Machin, Chair of the Citywide Directors of Finance Group, presented the report. He highlighted key headlines from the report including:

-  The Leeds health & care system ended 2016/17 in a more favourable position than that predicted at quarter 3.

-  The plans for health and care services within Leeds City Council and for the Leeds CCGs demonstrated the delivery of a breakeven position across the future 4-year planning period. However, this was reliant on the assumed delivery of significant levels of recurrent savings and the CCGs being able to access some of their previously accumulated surpluses.

-  The aggregate 4-year plans of the three NHS Trusts would not achieve breakeven across the whole period without receipt of additional national funding, better management of demand, and delivery of significant levels of savings.

-  The significant financial risk associated with the plans of all partners and that further citywide action is required to mitigate the risks in single organisation plans.

A question was raised over whether budget sharing to further the ‘one approach’ to health and care would be supported by the Directors of Finance. It was noted that although this approach may be viewed favourably, consideration would have to be given to the evidence required to support this approach. Members recognised that statutory and regulatory responsibilities may impact on collaboration but felt that this approach should be explored.

Further discussions noted the continuing austerity measures and the challenge of finding money upfront to invest in collaborative working. Concern was expressed that CCGs may not be able to draw down any previously accumulated surplus funds, as suggested in the report, due to Treasury restrictions and national funding pressures. An approach to PEG was suggested in the first instance to consider the opportunities for collaboration and budget sharing.

RESOLVED –

a)  Having reviewed the Leeds health & care quarterly financial report, the Board noted its contents and the comments made during discussions;

b)  To note the extent of the financial challenge over the next year and until 2021 and the need to further develop a shared system-wide response and assurance that this challenge will be met;

c)  As part of the Boards’ role to provide clear guidance to the Leeds Health and Care Partnership Executive Group on the possible actions required to achieve financial sustainability, the Board asked that PEG

i)  Convene a workshop to consider and identify the opportunities for collaboration and budget sharing

ii)  Undertake a piece of work to gather and understand savings and Return on Investment.