To consider cost saving proposals by the provider arm of the Primary Care Trust.

The Committee considered cost saving proposals by the provider arm of the Primary Care Trust.

Mr Mike Thomas, Director of Operations at the Primary Care Trust had submitted a briefing paper setting out proposals to achieve cost savings in 2006/07.

Mr Simon Hairsnape, Deputy Chief Executive of the Primary Care Trust introduced the briefing paper, explaining that as a consequence of the financial pressure on the NHS nationally the PCT was required to save £6.6 million of its 2006/07 budget (3.3%).  The savings made were to be contributed to a national NHS bank to fund NHS bodies in most difficulty.  This was a challenge.  However, the PCT was determined to act quickly in the belief that this would enable it to minimise the impact.  It was proposed that one-third of the money would be saved in Commissioning by focusing on value for money and managing emergency admissions (not to the detriment of services), one-third in Primary Care (a contractual matter with the GPs and consequently not a matter for the Committee), and one-third on Services provided directly by the PCT as described in the briefing paper.  Whilst the PCT maintained that the proposed savings on directly provided services did not have a significant impact on services it had been thought appropriate for the Committee to consider the matter.  However, he cautioned that if the Committee was minded to require a consultation exercise on the proposals the consequent delay in implementing reductions could mean tougher decisions would be needed later in the year.

Mr Thomas then presented the briefing paper he had submitted, commenting on each of the proposed reductions.  The paper noted that the proposals listed left a £350,000 shortfall in the savings target and that a range of other areas where savings could be made were being explored, again with the intention of not impacting on service provision.  It was also noted that an additional saving requirement, failure to achieve the savings as proposed or deterioration in the financial position could lead to a harsher saving proposal.

Mr Thomas emphasised in conclusion that the aim had been to avoid reductions in services or redundancies and that it was intended that the reductions would be temporary and that the services would be developed further in the future.

Mr Hairsnape added that the financial pressure on the NHS should only affect the current financial year.  He reiterated that the proposals were considered to be the best package that could be put forward to allow the PCT to break even and minimise the effect on services.

A question was asked about the decision to postpone the introduction of two new consultant posts in the Mental Health Service.  In reply it was stated that this did not impact on the current service but represented a future development opportunity.

It was noted that the proposals had been discussed with the Patient and Public Involvement Forum and were supported by them.

The Committee’s view was that the proposals could not be considered to represent a substantial variation, noting the assurances that the effect on services had been minimised and the importance of the Trust implementing measures as soon as possible.

RESOLVED:   That the cost saving proposals by the provider arm of the Primary Care Trust as set out in the briefing paper be endorsed to enable the Trust to proceed with their implementation at the earliest opportunity.