Cannock NHS managers must get services in order or lose power to buy in services, health boss warns
A health boss has warned doctors and NHS managers in Cannock will lose the power to buy in services unless they can get their finances in order.
Dr Johnny McMahon said Cannock Chase Clinical Commissioning Group, which he chairs, needed to address its current deficit which has now risen to £1.9million more than planned for 2014/2015, according to latest figures.
The CCG, which is made up of 27 GP practices in South Staffordshire, has a budget of £167million to spend on health care this year although a planned deficit of £8.6million had already been identified.
But at the end of December the overspend had gone up by £1.7million and by the end of January - the latest public figures - it had risen again to £1.9million.
The bulk of the budget is allocated for contracts to buy in acute care services - short term treatment for severe illness or injury - and it was in this area where the biggest overspends were identified.
This year more than £1.4million more than originally anticipated has been spent on buying care from the Royal Wolverhampton Hospital Trust while an extra £1million was forked out to the Mid Staffordshire Foundation Trust, which formally dissolved in November.
Dr McMahon said: "If you are of the view that having an organisation that has more clinical input in terms of commissioning without just being a contracting body, we only have that privilege as commissioners providing we perform to the satisfaction of NHS England.
"If we don't deliver on quality, safety and cost effectiveness it is only a matter of time before that privilege is taken away.
"The withdrawal of that privilege will be to the disadvantage of our patients and a sad day for clinical care."
Finance chief Paul Simpson said the CCG had been under the close watch of the NHS England area team and maintained it would meet the target deficit by the end of the financial year.
He said: "We are still aiming to hit the control target. I must sound like a scratched record but it is really important we do that.
"If we can get through this period the scrutiny will dissipate somewhat.There are going to be some bumps along the road but I'm confident we'll get there."
CCGs replaced Primary Care Trusts in 2013 to create a clinically driven health system.
Cannock CCG, which is predominantly responsibly for buying secondary health care services including hospitals, received a boost last week when it was confirmed its application to jointly commission GP services was accepted and would come into effect from April.