Managers’ Bulletin
Issue 18
Page 3
3.
Progress with Financial Savings Plans
To help meet our financial targets this year, it has been necessary to implement a number of savings plans across the trust’s services and overheads. The total value amounts to over £1.3 million but £0.6m of this relates to a non-recurrent asset valuation issue for which there are specific plans shared with commissioners. Progress with the £0.7m has been variable but, as we approach the last quarter of the financial year, it appears that all the planning and hard work put into delivering the savings will produce the required total although not all the savings achieved in-year are recurrent. Thank you all for your efforts in contributing to this achievement. Not only does this help to balance the finances but it also demonstrates our effective use of public money and that we are controlling and reducing costs by the efficient use of scarce resources. John Derham, Director of Finance
4.
Change of organisational form
A few people have mentioned that it would be helpful to re-visit and update some earlier FAQs from past Managers’ Bulletins. So, here’s a bumper ‘Christmas Special’! Why are we doing this? Government policy is focusing on enabling a greater breadth of provider organisations (private through to voluntary) – to create more competition within the health and social care marketplace.
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The government wants all NHS provider organisations to change their organisational forms by 2008 so that they become more accountable to the public, and more independent and ‘savvy’ in their operations as businesses. Trusts who will not meet Monitor’s criteria for Foundation Trust status will need to consider being merged with, or acquired by, other organisations.
The imbalance between the state of Ridgeway Partnership’s finances and that of other trusts within the local health economy puts the Trust under obligations to meet targets and saving plans that are not in the interests of its own development plans. We really have no choice about whether we can change our organisational form or not. However, keeping ahead of these developments means we can retain more choices over what type of form we would like to become. What options are we looking at? We are considering: Foundation Trusts (FTs) At the moment the established model for this is largely acute-influenced. The Department of Health is just beginning to launch some pilot sites for Community FTs for organisations of about our size. Monitor is still working on what this might mean in practice. Social Enterprises There are a range of different types of Social Enterprises . We have given most attention to Community Interest Companies (CICs) limited by guarantee. However, we are now doing further work on what CICs limited by shares might look like, as this potentially gives us full access to the NHS Pension Scheme.
Managers’ Bulletin
Issue 18
Page 4
What options are we looking at? (cont) Charitable company This is an option that we haven’t discussed at length, but has significant advantages around tax benefits and lighter regulation, and tried and tested models of governance. Implications for us as a business Whichever organisational form we choose, a prominent emphasis will be placed on the robustness of our business capacity and our strategic vision. The Business Sustainability Review, begun this month, looks at: Financial and Business Modelling; Governance & Culture, Service Quality & Performance and External Relationships. The first three working groups will be focused on developing our market intelligence, financial models and business strategies. It will be important that we understand how to interweave these pieces of work – ie. That we are able to be just as responsive to a change in market competition in our estates development and workforce strategies as in our business plans. Implications for staff We are still deeply conscious that pensions, terms & conditions are critical concerns for staff. Please be reassured that these aspects are not being forgotten and work has been going on with our legal team to unravel this area. Whichever organisational form we choose, TUPE will apply and terms and conditions will carry over to the new organisational form. With the increased staff and public involvement that all of these organisational forms demand, it is also important to understand that in the future decisions over changes in terms and conditions will lie more in the control of staff than they do at present! NHS pensions will be transferable for Foundation Trusts, and a precedent has been set for companies limited by shares eg, Central Surrey Health, to transfer and continue offering NHS pensions. There are also other routes that are still under consideration. We do need to release a document that catches the complexity of these different routes and implications and makes them more visible to staff - during our ‘Shape our Future’ period (see below), I would like to use people’s help to focus on this area. If you would be willing to be part of this exercise, I would really welcome your involvement. How services might change It is still important to stress that the nature of our services will not change. Staff at the front-line will notice no change in daily working routines. As the organisational form develops, support and administrative staff might notice some changes in the shape of their work – but hopefully only in ways that makes tasks smoother and more effective. Each of the organisational forms will anticipate all stakeholders taking more active responsibility for being involved in the shaping of their services.
Managers’ Bulletin
Issue 18
Page 5
What have we done so far? A substantial amount of research, networking, reading and writing! • Over the last six months, we have met with experts in different fields and attended workshops and conferences both to communicate our unique position and to learn from their experiences of the political context and the different options. We have applied to the Department of Health to be a pathfinder site for exploring social enterprise – and are awaiting the outcome… If we are successful, this will not pre-determine our decisions concerning our options. We have begun working with the SHA to design our Business Sustainability Review and to begin the processes of carrying it out. We have found people with the expertise to help support us with the Business Sustainability Review and have chosen a legal firm to work with. We have made arrangements to visit other types of organisations to extend our learning, firsthand, of what others have managed to achieve/not achieve through way of their organisational vehicles and to learn from their ideas of marketing and engaging with their communities. We have continued to learn from each other internally – listening to the needs for on-going communication and people’s ideas for the future. In particular, we have been working with our user groups, external auditors and Patient and Public Involvement Forums.
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(I have submitted a three month report to SDT, which is available on request – this holds more detail on the above). What time-frames are we working to? The time-frames for the project have always been – and still are – very difficult to gauge – which is frustrating for everyone! Gathering concrete information can be slow, political messages change and we are loath to rush something this important! However, the Board is aiming to be equipped to give a strong steer regarding the next phase of our journey on the 28th March 2007. Our staff, users and public are invited to participate in ‘Shape our Future’ – a two month discussion and feedback programme being launched on the 10th January to review and evaluate opinions and feelings about the information we have gleaned so far. This feedback will be circulated as a report to the Board on the 16th March. What are the next stages? • • We are now drawing together the first phase of research, information gathering and building relationships with other organisations engaged in moving towards Foundation Trust or Social Enterprise status. We are planning to distribute all this information to our staff, users and public through ‘Shape our Future’, a discussion booklet (also in accessible format) and a two month programme of road-shows starting in January. Please could all managers ensure the Publications Department (enquiries@ridgeway.nhs.uk) know how many copies of these booklets they will need for their staff. It is essential that every member of staff receives one. Please include members of staff who are on long term sick, maternity leave or on secondment. Please could the Learning Disability Team Managers make us aware of how many copies you might need over the two months for practitioners to offer to services users on visits, etc
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Managers’ Bulletin
Issue 18
Page 6
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Please could you encourage your staff to get in touch with myself or the Publications Department (enquiries@ridgeway.nhs.uk) concerning any particular information they would like to see included in the discussion booklet. There is also an opportunity at the Trust board lunch this week (Wednesday 20th) to offer thoughts and feedback on what is needed. Please could you let me know of any of your partners in other organisations or public/carer groups who might like to receive copies of the booklet. Feedback gathered through this time will be considered by the Board when they meet to discuss next steps on the 28th March 2007.
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Please be aware that this is not the last chance to make opinions and thoughts known! The consultative and involvement processes will continue on after the 28th March and, if necessary, develop a different shape through the second phase of the project. Rachel Hill, Projects Manager 01865 288 186 rachel.hill@ridgeway.nhs.uk
5.
“Investors in People” Preparation
A decision has been taken by the Improving Working Lives (IWL) Group to go for Investors in People (IiP) accreditation. Although there is a lot going on and being planned for the coming year we are assured by our external advisor that this standard provides an invaluable guide to support organisational change! A short article will be published in the next News & Views to let people know the plan and the next steps. Please do start to talk to staff about the project and to share any ideas with the working group (via Jenny Goves, 01865 228058). Please encourage people to get involved, either as part of the group or locally to support the action plan. In due course you will be asked to tell the group what you have in place to ensure your teams know what is going on, know the contribution expected of them, are supported and developed to succeed and are recognised for their efforts. We will also be asking how you know people are making a difference and are using their knowledge and skills in their work. Luisa Gonzalez-Tarrio will be joining the HR Department in January on the NHS Graduate HR Scheme. One of her responsibilities whilst here will be to manage the IiP project. For more information in the meantime, contact Rhian Cadvan-Jones, 01865 228183.
Please help us to make this bulletin as informative and useful as possible! If you have any information that you would like to communicate across the Ridegway Partnership the Managers’ Bulletin is an excellent tool to get your message across. The bulletins are issued on a monthly basis, but please send your information through regardless of the deadline so that we can gauge whether or not more bulletins need to be issued so that your information can be included. Please e-mail your information to Emily MacDonald — Emily.Macdonald@ridgeway.nhs.uk.