There are a number of organisations in the South West beset with difficulties, financial and otherwise. But Kernow Clinical Commissioning Group, along with Southern Health Foundation Trust, probably ranks among the most troubled.
The CCG’s problems first came to light in December when it revealed that it was not – as it had previously reported – forecasting half a million pound surplus, but a £14m deficit for 2015-16.
The shortfall ended up even worse than that – according to the latest information from the CCG, it finished with a £17.4m deficit (it actually overspent by £21.4m but was able to improve its position slightly because of a £4m surplus the previous year).
Things will get worse before they get better – the CCG is targeting a cumulative deficit of £38.8m this year in its financial recovery plan, but this will require an eyewatering £41.5m of savings. If it fails to make the savings it could end up with a cumulative deficit of £57m – that would put it in basically the same league as its neighbour Northern, Eastern and Western Devon CCG, which has the largest cumulative deficit in the country.
Full story in HSJ, 11 May 2016