North Kirklees NHS faces £4m funding shortfall
North Kirklees Clinical Commissioning Group (CCG) was required to make £10.2m of efficiency savings during 2015-16 - and have a surplus of £3.6m at the year-end.
But the CCG, which is the main commissioner of services from Dewsbury and District Hospital, predicts it will only be able to make savings of £6.2m, leaving a £4m shortfall.
The funding gap has emerged as the CCG faces the rising cost of treating growing numbers of elderly people with long-term health conditions.
North Kirklees CCG said in a statement: “Increased financial pressures and challenges are being experienced by the NHS nationally, and NHS North Kirklees CCGs is facing a challenging financial outlook in common with many other NHS organisations.
“These arise from a combination of the aging population, more people living with long term conditions, new treatments and technologies and national funding pressures.
“The CCG is also working with all health and social care partners and providers to see where we can work in a more integrated way to achieve our budget goals and identify and implement sustainable ways to deliver services.”
NHS England is demanding savings from NHS organisations under an efficiency scheme called Quality, Innovation, Productivity and Prevention (QIPP).
A report to North Kirklees CCG’s government body meeting this week said: “£10.2m QIPP is required in 2015-16.
“The forecast QIPP for 2015-16 is £6.2m with a shortfall of £4m.
“There is a risk that the CCG will fail its financial duties to achieve a surplus of £3.6m in 2015-16 due to pressures on expenditure, risks to QIPP delivery and challenges in identifying and delivering mitigating actions in a timely manner.”
North Kirklees CCG is made up of a group of GPs who commission services for a population of around 185,000 people in Dewsbury, Batley, Mirfield, Heckmondwike, Cleckheaton, Birstall, Liversedge and Ravensthorpe.