The Christie NHS FT Annual Report & Accounts 2019-20

Consolidated Accounts of The Christie NHS Foundation Trust 2019-2020

2. Operating segments

Under IFRS 8 'Operating Segments', the Trust is required to disclose financial information across significant operating segments which reflect the way the management runs the Trust. The Trust’s core activities fall under the remit of the Chief Operating Decision Maker ("CODM") as defined by IFRS 8 'Operating Segments', which has been determined to be the Management Board, a sub-committee of the Board of Directors. These core activities are primarily the provision of specialist NHS healthcare, the income for which is received through contracts with commissioners. The planned level of activity is agreed with our main commissioners for the year, and are listed in the related party disclosure (see Note 22).

The Trust manages the delivery of healthcare services across clinical divisions. Certain aspects of performance are reported at a divisional level to the Management Board, although this is not the primary way in which financial matters are considered.

The Trust has applied the aggregation criteria from IFRS 8 Operating Segments because the clinical divisions provide similar services, have homogenous customers, common production processes and a common regulatory environment. The overlapping activities and interrelation between the divisions also suggests that aggregation is appropriate. The divisions report to the CODM, and it is the CODM that ultimately makes decisions about the allocation of budgets, capital funding and other financial decisions.

3. Operating income

NHS Foundation Trust

Group

Group

NHS Foundation Trust

2018-2019

2018-2019

2019-2020

2019-2020

£000

£000

£000

£000

Income from activities 3.1.1 Other operating income 3.2

238,324 98,490

238,324 97,505

290,965 68,765

290,965 61,434

336,814

335,829

359,730

352,399

3.1.1 Income from activities by type

NHS Foundation Trust 2018-2019 Restated

Group

Group

NHS Foundation Trust 2019-2020

2018-2019 Restated

2019-2020

£000

£000

£000

£000

Elective income

41,986 17,880 123,460 5,286 24,290 2,553 2,494 8,161 4,012 3,665 1,260

41,986 17,880 123,460 5,286 24,290 2,553 2,494 8,161 4,012 3,665 1,260

45,628 20,222 132,278

45,628 20,222 132,278

Non Elective income Outpatient income*

High Cost Drugs

5,600

5,600

NICE drugs

35,178

35,178

Growth Hormone drugs Other NHS Clinical Income

4,207 1,978

4,207 1,978

CDF drugs

14,831 20,243

14,831 20,243

Proton Beam Therapy

CQUIN** MDT***

1,536 1,307

1,536 1,307

Agenda for Change pay award Pension contribution central funding****

1,632

1,632

0

0

0

0

5,907 2,050

5,907 2,050

Other*****

1,645

1,645

Total

238,324

238,324

290,965

290,965

Income from activities relates to income arising from mandatory services. Growth in activity relates to increased patient treatments. Due to the specialist nature of the Trust, increased income also relates to the complexity of patient treatments undertaken during the year. A new methodology for categorising income has been adopted in 2019-20. The 2018-19 income analysis has therefore been restated to the new 2019-20 categories to enable a direct comparison between years. ****Notional income for additional employer pension contributions paid by NHS England. Note 6.1 includes notional expenditure of £5,907k. **Commissionig for Quality and Innovation (CQUIN) is awarded on achievement of quality targets related to a small subset of specifically identified quality schemes. ***Multi Disciplinary Team (MDT) income is block funding for the provision of dedicated meetings where numerous healthcare professionals will jointly agree upon the most appropriate course of treatment for each patient. * Outpatient income includes radiotherapy and chemotherapy ambulatory treatments and diagnostic imaging and tests.

*****Other includes income in relation to Covid-19 of £437k.

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