2016/17 Financial Plan Emma Sayner Chief Finance Officer 27 May 2016

Contents 2016/17 CCG Allocations – Programme & Running Costs Business Rules Budgets Growth Assumptions Main provider contracts

2016/17 CCG Allocations: New Allocation Formulae – includes inequalities adjustment resulted growth of 3.05% - £382m Although additional funding is significant there are several conditions on its use (GP IT, CAMHS, 1% reserve) 2016/17 Distance From Target reduced to +1.94% (2015/16 = +6.76%). Separate Allocation for ‘Running Costs’ - £6.2m

2016/17 Business Rules: No drawdown against historic surplus (1% minimum) Maintain uncommitted reserve of 1% - £3.8m Hold 0.5% contingency - £1.9m Deliver underlying recurrent surplus 1.5%

2016/17 CCG Recurrent Programme Budgets: Brought Forward Allocation £370.7m Growth (3.05%) £ 11.3m Recurrent Programme Allocation £382.0m Acute Services £192.6m Mental Health £ 39.2m Community £ 43.2m Continuing Care £ 28.6m Primary Care £ 53.7m Other / Reserves * £ 16.1m Recurrent Programme Expenditure £373.4m Recurrent Programme Surplus £ 8.6m (2.2% of recurrent resources) * Incorporates GPIT, elements of Better Care Fund and NHS Estate

2016/17 CCG Recurrent Programme Budgets Recurrent Programme Adjustments Incorporated Above Net Inflation Investment QIPP TOTAL & Growth Acute Services £3.4m £3.7m (£3.9m) £3.2m Mental Health £0.3m £1.6m (£0.0m) £1.9m Community £0.2m £0.4m (£0.0m) £0.6m Continuing Care £1.6m £0.2m (£2.3m) (£0.5m) Primary Care £1.0m £0.8m (£0.7m) £1.1m Other / Reserves* £0.1m £3.1m (£0.0m) £3.2m Total £6.6m £9.8m (£6.9m) £9.5m * Incorporates GPIT, elements of Better Care Fund and NHS Estate

2016/17 CCG Non Recurrent Programme Budgets: Non Recurrent Programme Allocation £ 7.8m (Prior Year Surplus) Reserves / investments Contingency £ 2.0m (0.5% of total allocation) Uncommitted Risk Share £ 3.8m (1% of Programme Allocation) Mental Health £ 0.5m Community £ 1.0m Continuing Care (Legacy Claim Contribution) £ 0.7m Primary Care £ 0.6m Non Recurrent Programme Expenditure £ 8.6m Non Recurrent Programme Surplus / (Deficit) (£ 0.8m)

16/17 CCG Recurrent Running Cost Budgets Recurrent Running Cost Allocation £ 6.2m CCG Staffing Costs/ Commissioning Support £ 5.3m Estates / Other Non-Pay £ 0.9m Non Recurrent Programme Expenditure £ 6.2m Non Recurrent Programme Surplus £ 0.0m

16/17 CCG Summary of Budgets Allocation £m Expenditure Surplus Recurrent Programme 382.0 373.4 8.6 Non -Recurrent Programme 7.8 (0.8) Total Programme 389.8 Recurrent Running Costs 6.2 0.0 TOTAL CCG 396.0 388.2

GROWTH ASSUMPTIONS 2% efficiency requirement Tariff uplift of 3.8% (includes CNST adjustment on specific HRGs) – Net 1.8% growth Mental Health, Ambulance and Community Contracts uplift of 3.1% - Net 1.1% growth (note new community contract remained at 15/16 prices as agreed in tender documentation) CQUIN remains at 2.5% Continuing Care budget uplift of 5.5% to incorporate living wage adjustments. Prescribing budget uplift of 2% to reflect price increases

Main Provider Contracts / areas of spend Hull & East Yorkshire Hospitals - £172.6m Prescribing - £49.7m Humber Mental Health - £33.7m City Healthcare Partnership - £32.7m Continuing Healthcare - £29.3m Yorkshire Ambulance Service - £12.5m Spire - £8.0m

Recommendation: The CCG Governing Body are asked to formally approve the 2016/17 Financial Plan.