Ashford and St. Peter’s Hospitals NHS Trust has announced that the Trust achieved a surplus of £1.1m for the financial year 1st April 2006 to 31st March 2007 (2006/07).

This is despite starting the year with a ‘Turnaround Plan’ to reduce expenditure by £11.2m and the loss of income during the year. In three out of the last four years the Trust has been in financial balance - 2005/06 being the exception.

“This is a substantial achievement by all staff at the Trust who have coped with significant restructuring and restrictions on spending during 2006/07,” says Keith Mansfield, Director of Finance at Ashford and St. Peter’s Hospitals. “Despite this we have demonstrated yet again that we are able to control our finances and respond to problems when they arise and meet national targets for patient services at the same time.”

Ashford and St. Peter’s has now agreed high level financial plans with the Primary Care Trusts (PCTs) who buy services from the Trust, the main commissioner of services being Surrey PCT. The fine detail of the plans is still being finalised but the overall financial plans have been submitted to the South East Coast Strategic Health Authority for approval.

Mr Mansfield continued: “Further work is required to reduce expenditure plans for the new financial year, 2007/08. We currently have an income gap of £10m which sounds like a lot of money but considering the gap has been double or more than that in previous years, and the Trust’s overall turnover was £178m last year, I am confident that we will rise to the challenge again.

“Our budget for 2007/08 is only being set for the first quarter to enable these detailed plans to be finalised and we expect to bring the full year budget back to the Trust Board in July. It is clear to us that 2007/08 will be another tough year. We have to deliver the national target of patients seen and treated within 18 weeks – GP referral to discharge from hospital – with little extra funding. This will mean a very close look at the way we organise services across both Ashford and St. Peter’s Hospitals and how we work with other hospitals and services. We cannot rule out fundamental reorganisations in some areas. It will also be necessary for us to make further efficiency savings.”