Embargoed until 00.01 on 7 June 2006

Taking hard decisions now for next year's patients

Yorkshire Wolds and Coast PCT announces first steps to financial recovery

Yorkshire Wolds and Coast Primary Care Trust (PCT) , working in close partnership with East Yorkshire PCT , has announced a draft plan to restore financial balance to the area's health service, stressing that this is a key priority for this year.

Jointly the two PCT's are predicting a shortfall of £20.7 million in 2006/2007 unless action is taken to reduce costs.

They have identified a series of measures to bring them to financial balance, which reflect many of the actions being taken by PCT's up and down the country. These measures, outlined in the ‘turnaround' strategy – taking hard decisions now for next year's patients - have the full support of clinicians, managers and directors within the two PCT's and from other local NHS organisations.

“No stone can be left unturned in the pursuit of savings. We have a responsibility to our patients to restore financial balance and continue to live within our means. Whilst we have delivered substantial improvement to health services in our region over the last five years, we face a difficult financial future and we must act now. We have succeeded in improving patient care and reducing waiting times, but this comes at a price and action to address the gap between what we spend and what income we are receiving is unavoidable,” said Claire Wood, Acting Chief Executive/Chief Nurse.

The proposed financial recovery programme will involve a two stage process:

• • Tactical plans – changes which will rapidly address the deficit.

• • Strategic options – more complex changes to services which will have significant impact on expenditure.

The draft turnaround plan will be presented to the PCT's public Board meeting on

29 June 2006 although given the need for quick action, elements of the first stage of the recovery plan (the tactical plan) has already started. Action to put in place a series of tactical savings initiatives will quickly stop the financial position deteriorating further.

The tactical plan includes a wide range of actions to improve efficiencies in the way the PCT's commission and provide services. Examples of these include reducing management costs, the number of follow-up appointments in hospital settings and the amount spent on medicines as well as re-organising family planning, sexual health services and palliative day care services.

The second stage of the recovery plan – the strategic plan – will continue to be evaluated and refined but many options are being considered by the PCTs.

Claire Wood said: “We need to make sure that we are using all of our resources – money, skilled staff and buildings – in the best possible way. This will mean, in the long term, moving away from the traditional way we currently deliver some of our services as the cost of funding such a complex range of services continues to grow.”

“Modernisation and development of services and the need to take account of the financial position present us with huge challenges. We have to face these challenges where there are real conflicts between demand and resources and between evidence and customary practice.”

Claire Wood concluded: “The PCT's' aims are clear. We want to continue to meet the healthcare targets for our population and return the PCT to recurrent financial balance in order to provide a secure foundation from which to meet future healthcare needs of our local population. In order to achieve this we must take hard decisions now”.

[ENDS]

Note to Editor:

A full copy of the draft Turnaround Plan is attached under strict embargo and will be available from the homepage of our website from 8.30 am tomorrow morning ( 7 June 2006 ) at www.eastridingpcts.nhs.uk .

Issued by : Quintina Davies, Communications Manager, East Yorkshire and Yorkshire Wolds and Coast Primary Care Trust, 01377 243033.

Date : 6 June 2006