Issue - meetings

-        Presentation by Chair and Acting Chief Executive

The Chairman introduced Peter Lee, Chairman of Rotherham Foundation Trust Board, and Michael Morgan, Interim Chief Executive of Rotherham Foundation Trust.

Peter gave a brief resume of recent events at the Trust.  As a result of the Nicholson challenge, the NHS had been required to save £20Bn across the country of which Rotherham’s proportion was £50M over 3-4 years.  It was fair to say that the Board had not acted quickly enough in terms of recognising it had to make the savings.

As a result, the Trust had come to the attention of Monitor, the independent regulator of NHS Foundation Trusts, who assess the quality of service provided, financial stability and sustainability of a Trust.  When examining the Trust’s finances, the Trust had been downgraded to a 2 from a 3 as it had not achieved the required savings.  They then examined the plans for the organisation and the way the organisation was moving forward and decided that they had concerns about the financial stability of the organisation.  Monitor had declared the Trust to be “in significant breach” but decided not to exercise Intervention Powers as they were satisfied with the quality of care but not the financial recovery.  A recovery plan had to reach them by 18^th March together with monthly meetings and reports. 

Work on the plan was underway and would be submitted in accordance with the deadline. 

Michael stated that it was important to note that Rotherham was in a situation that was not unique to other Trusts within the UK.  Included in the report to Monitor would be the first year very robust budget process together with years 2 and 3.   Monitor had also requested a 3 year strategic plan to be submitted in September, 2013, looking at all the services throughout the Trust. 

Michael had started in Rotherham on 1^st December, 2012, to work on transformation issues but it had soon become clear that it was a turnaround company that was required.  An interviewing process had commenced and Bolt Partners appointed.  Michael had commenced in his new role at the beginning of February, 2013.

A question and answer session ensued with the following points raised/clarified:-

Financial Situation

-          How had the Trust gotten into such deep financial troubles?  Financial performance was flagged up as an issue in February, 2011.  What has been done since then?  Would the Trust be able to achieve the required savings?  Could the Trust go “bust”?

The Trust had always spent its income on its services which did not have a reserve fund.  The impact of the required savings and the Trust not acting quickly enough in certain areas resulted in it finding itself in a position where it was spending the money it was not receiving as well as not making the efficiencies at a sufficient pace.  The Trust had been in breach in 2010/11 because it had not achieved savings required then by Monitor.  In the past funding had always appeared and the problems solved.  In the  ...  view the full minutes text for item 64