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Clinical Leadership Development Programme Finance & Budgeting. Ray Willis Divisional Finance Manager 11 th May 2012. Purpose of the Session. How the money flows in the NHS & PbR Current financial climate Corporate & Financial Governance Budgets, Budgeting approaches & Budget setting
Divisional Finance Manager
11th May 2012
This level of saving can only be contemplated if we look at major system transformation & radical solutions as well as tried and tested options
The need for real efficiency savings !
“a financial plan that sets out in clear and concise terms the resources assigned to the delivery of service and operational targets for a defined period”
Forward planning allows the Trust to shape its future, rather than to react to events and is critical in the achievement of organisational objectives.
- Financial and/or quantitative statements
- Prepared and agreed for a specific future period
- Designed to fulfil agreed objectives
- Drawn up for separate activities/projects and for organisations
- Prioritisation of objectives identified in the planning process and formalised via the annual plan and underpinning Service Level Agreements
- Assessment / quantification of total available resources, both financial and non financial
- SLA’s with PCTs and other NHS bodies in accordance with the National Tariff and PbRs
- Private patients, RTA’s
- Medical and non-medical training funding via the Workforce Development Directorate of the SHA
- Commercial sources of income – car parking, catering etc
- Pay – detailing the agreed establishment in terms of WTE, £’s by AfC and local Trust grade
- Non-pay – by subjective category e.g. drugs, M&SE, provisions, energy etc
- Internal recharges for services provided / received such as pathology, radiology etc
What is a budget holder’s responsibility?
- understand and manage their budget
- what drives income/costs ?
- what influences outcomes/outputs ?
- deliver required quantity/quality of care/service
- maximise income, minimise cost
- Clarify objectives – what are you required to deliver?
- Understand what other organisation-wide targets you contribute to
- Maximise income – look for opportunities
- Minimise costs
- Cash releasing savings: the same work for less money
- Cost improvement: more work for the same money
- Focus on VFM
The purpose of the NHS is to serve patients and the public by whom it is funded. Clinicians seek to do this by using their skills to provide the best possible advice, treatment and care. But they can only do this if the money available to the NHS is used well. Failure to do so results in less care and lower quality. Money will only be used well if clinicians are fully engaged in managing it. Ultimately, it is clinicians who are responsible for the way in which services are delivered to individual patients and it is they who commit the necessary resources.