The Healthcare Management Trust (HMT) has said reductions in both NHS activity and NHS tariff prices were behind a 9% drop in total income for the year ended 31 December 2017.
NHS work accounts for roughly 60% of activity across HMT’s two hospitals – St Hughes Hospital in Grimsby and Sancta Maria in Swansea. Tariff reductions resulted in a 4% decrease in NHS income at St Hughes while there was a sharp decline in the number of NHS patients admitted for care to its Swansea site.
Combined, the two hospitals saw over 37,162 outpatients – an increase of 4% on 2016. However, inpatient numbers across the two sites fell from 10,400 to 9,191. The vast majority of the decline was at Sancta Maria, where NHS episodes fell by 24%.
In total, HMT, which also operates a number of care homes, reported income from charitable activities of £29.4m against £32m in 2016. Including donations and legacies of £2,700 and investment income of £407,000, total income for the year came in at £29.8m (2016: £32.6m).
A reduction in finance costs together with a small reduction in the cost of delivering services, pushed total resources expended down from £31.1m to £30.8m, leaving net expenditure of £1m against net income of £1.5m the previous year. However, the company was boosted by investments gains of £1.3m, which resulted in a net movement in funds of £353,000 compared to £2.6m in 2016.
At the year end, total funds and reserves stood at £23.1m (2016: £22.7m).
The Trustees said that although the financial performance of the company was disappointing, remedial actions had been implemented during 2017 and were expected to result in recovery in net income from the two hospitals this year.
Chairman John Folliott Vaughan said: ‘The first few months of 2018 have shown a marked and positive recovery from some of the issues that arose in 2017. We are entering into an exceptionally busy and challenging couple of years, both in terms of the charity’s existing operations and major new developments, but we do so with a stronger team and a robust balance sheet and I am confident that we have the people and the resources that we need.’