Clarification on Healthcare Funding

You may have seen or heard recent media coverage about the Leicester, Leicestershire and Rutland PCT Cluster having returned £10million to the Department of Health (DH).

There has been some misunderstanding about what this means for funding local healthcare and we would like to take this opportunity to clarify the situation.

The return of the £10million is simply part of government accounting procedure. The PCT Cluster has already spent this money on local healthcare for the benefit of local people but will not need to pay the bills for these services until the next financial year, 2012/13.?As we cannot have cash in our bank accounts at the end of the financial year we have returned what we estimate will be left in the bank to HM Treasury via the DH. We will however, get that cash back in 2012/13 to cover the actual settlement of the bills for what we’ve already spent. This is accepted accounting practice and enables the health system to make the best possible use of public money at a national as well as local level.

Please be assured that the PCT Cluster always seeks the maximum amount of healthcare funding possible and investing money wisely across local healthcare services is very important to us.