To ask the Secretary of State for Health, what assessment he has made of the reasons for the financial deficit at NEW Devon Clinical Commissionng Group; and what steps he plans to take to address that deficit.
16 December 2014
We are advised by NHS England that Northern, Eastern and Western Devon Clinical Commissioning Group (CCG ) is facing significant financial pressures with an end of year deficit of £14.5 million for 2013-14, and a similar deficit predicted for this financial year.
The CCG has stated that demand for services is outstripping what the CCG can afford and this increase in demand is having a serious effect on its financial position.
We understand that Devon is one of eleven financially challenged health economies to be provided with intensive support by NHS England and that the report of this work is due to be published shortly, along with planning guidance. The planning guidance will be a joint publication with the NHS Trust Development Authority, Monitor and NHS England.
The CCG has stated that its financial projections are being updated in light of the current pressures and the five year system-wide assessment of a potential finance gap between resources and the cost of health demand. As part of this work, an extensive detailed analysis of services and costs in the NEW Devon health economy is being conducted. The NHS England Devon, Cornwall and Isles of Scilly Area Team Director of Finance has given significant support and challenge to the CCG, to understand its financial position and to support the development of a financial recovery plan.
The NHS England Area Team has also been engaged with the CCG through the quarterly CCG assurance process, and has agreed a set of actions with timescales to improve the financial position of the CCG.