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Long Term Financial Model

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LTFM - Mitigations & Sensitivities

Mitigations

Income

  • Contractual arrangements to mitigate risk of income loss
  • Limited additional income mitigations may be accepted e.g. increase non clinical income

Pay

Further review of staffing structures not already identified in CIPs including:

  • Reduction in overtime payments 
  • Structures / Flexible arrangements
  • T+C review
  • Manage sickness
  • Pay freeze/suspend increments
  • Vacancy freeze
  • Medical locum/agency freeze
  • Reduction in clincal PA's/new clinical excellence awards

General Expenditure 

  • Achievement of base case CIPs/bring forward efficiency programs
  • Deployment of contingency
  • Restrict non-essential expenditure/low risk mandatory training
  • Corporate Restructuring/outsourcing opportunities
  • Significant service line changes
  • Significant estates rationalisation
  • Reduce non-core loss making services
  • Restrict/postpone maintenance expenditure
  • Review services provided under contracts that do not directly generate payments

Cashflow

  • Restrict capital program
  • Managing debtors/creditors more effectively
  • Refinance of loans/utilise working capital facility/temporary bridging loans

Sensitivities

  • Loss of an entire service
  • Loss of part of a service
  • Reduction in activity across a number of services
  • X% reduction in income
  • X% failure to achieve CIP's
  • CIP slippage
  • X% failure to meet CQUIN targets
  • Requirement for additional capital investment
  • X% increase in pay pressures
  • Increase in agency/locum spend
  • Failure to meet workforce changes/s.devs plans within current resources
  • Equal pay claims

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