Agenda item

Jayne Brown, Chief Executive at NHS North Yorkshire and York will be in attendance at the meeting to give a verbal update on short-term measures being implemented in response to ongoing financial pressures evident within the local health economy.

The Committee received a verbal update from the Chief Executive at NHS North Yorkshire and York on the short term measures being implemented in response to ongoing financial pressures evident within the local health economy.

She thanked the Public Participation speakers for their comments and confirmed that she had only recently received copies of their concerns in writing and by email but that she would be replying shortly. She confirmed that she would also send copies of her replies to Scrutiny Committee members for their information and arrange to meet the various organisations.

She went onto explain the context of the pressures on the organisation with a budget of £1.6b and a potential shortfall of £29m they had had to take a range of measures to ensure the best discharge of resources, which they acknowledged, would affect some incredibly important services. There was £1.6m spent in the voluntary sector alone with contracts amounting to £150k but she acknowledged that the measures would have varying impacts on the bodies concerned. She went onto confirm that it was a matter of fact that they were in breach of the compact with these bodies but not in breach of contract. She explained that the decisions had not been taken lightly but that they had a statutory duty to break even by the end of the year. She pointed out that they received £1,400 per head of population and that they had been consistently overspent but they were fully aware of the impact these measures would have.

Members went onto express their serious concerns at the measures being taken and they questioned a number of points including:

• Had any savings been made within the NHS senior management? It was confirmed that £12m of savings had been made at this level with 60 compulsory redundancies.
• Details of previous debts requested. A debt of £45m had been eradicated two years ago but a further debt of £18m had now been accumulated which when rolled forward amounted to £36m.  
• Following earlier recovery plans it now appeared that services were diminishing. Confirmation that the short term recurring measures how been reduced as much as possible and that it was now time to work with the authority to discuss possible further measures to prevent the Board being in a similar position next year.
• Concerns that these were false economies and that ‘prevention was better than a cure’. Confirmation that front line services had not been considered and that it had been the infrastructure elements rather than direct care.
• Important that Equality Impact Assessments were carried out in relation to any changes to services, as they would have a varying impact on different communities. Confirmation that no EIA’s would be carried out until any changes became permanent.
• Request for reassurances that any future changes in funding would not be made without adequate notice as there were costs to these bodies both in employment contracts and cuts in funding. Acceptance that the NHS were accountable and that if they had had more time different procedures would have been followed.

The Chief Executive confirmed that in their move forward there would be a more strategic review with major changes being made in how healthcare was provided. She stated that she had noted member’s observations and comments and confirmed that she would be happy to return to brief Members of the Committee as further progress was made. ^1.

RESOLVED:             That the update on the short term measures being implemented in response to ongoing financial pressures within the local health economy be noted.

REASON:                  To update Members on current health related issues.