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Your spotlight on local services

City and Hackney told to save £11.4m to bail out health services in other areas

30/06/2017

City and Hackney clinical commissioning group (CCG) must find £11.4m savings this year, double the amount planned, to bail out other parts of north east London.

Savings will be made through cost-cutting across commissioning, prescribing, continuing healthcare and planned and unplanned care.

City and Hackney CCG had prepared to save £5m during 2017-18 as part of its annual efficiency drive.

But NHS England has now told the CCG they must double their savings target this year to support health services across north east London.

Homerton Hospital is already trying to make £13m in 'efficiency savings' in 2017-18. Part of their savings will go to north east London sustainability and transformation plan (NEL STP) to bring the overall area into financial balance.

The scale of cuts earmarked for City and Hackney NHS services emerged in reports to the CCG's governing board and Hackney's integrated commissioning board in June.

CCG chief officer Paul Haigh also highlighted the new savings target at a meeting of the Health in Hackney Scrutiny commission.

NHS England and NHS Improvement have issued a 10 point plan to make sure STPs across the country come in on budget.

NEL STP was found to have a £130.1 million financial gap although City and Hackney CCG ended the last financial year in the black.

In a report to City and Hackney's new integrated commissioning board, the CCG said: ‘As a result of this process, City and Hackney has been asked to generate further savings to offset financial under performance across the wider area.

‘This has meant that the guide target for City and Hackney has been revised to £11.5m pounds of savings. This equates to savings levels of 3%, which is much higher than what the CCG requires to balance its plan. The reason for this higher figure is to support the wider health economy and balance the STP wide control total.’

The CCG has responded by finding an additional £1.43m in savings and identifying a further £2.5m in the pipeline.

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