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Allocation adjustments ‘worrying’ says NHS England


12 June 2013

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NHS England's chief financial officer says he is “more worried” about the effects of the allocation adjustments on CCGs than the CCG leads affected.
The amount of money given to clinical commissioning groups each year in order to commission local services is worked out by a formula. 
Adjustments made when attempting to define the amount needed to commission specialised services meant some CCGs were plummeted into a deficit. 

NHS England's chief financial officer says he is “more worried” about the effects of the allocation adjustments on CCGs than the CCG leads affected.
The amount of money given to clinical commissioning groups each year in order to commission local services is worked out by a formula. 
Adjustments made when attempting to define the amount needed to commission specialised services meant some CCGs were plummeted into a deficit. 
Dr Amanda Doyle, clinical chair of Blackpool CCG, which has one of the worst life expectancy ratings in the country called the allocation adjustment one of the “biggest issues” concerning CCGs. 
She said: “On the first of April we passed with no conditions. We were in a healthy position. 
“Three months later we are posting a £7 million deficit, which is entirely related to the allocation adjustment. It's causing a lot of concern to a lot of CCGs. We've been assured this will be sorted out, but the further we get into the year the greater this concern gets.”
NHS England CFO Paul Baumann said: “This issue is a significant challenge, all related to the change from one set of commissioners to another set of commissioners.
“The simultaneous change and the scope of commissioning, the way in which we do it, the policies we adopt, it's massively complex and I think we're all surprised by how difficult it has been to tie down.” 
Baumann warned CCGs that “every penny counts” in this financial year.
At the Commissioning Show in London Paul Baumann said that clinical commissionig groups should make use of tools provided to them by NHS England to work out a suitable spend “before the money runs out”. 
Surviving through to financial year 2013/14 will take “discipline and strong collaboration” from clinical commissioning groups, according to Baumann. 
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