South Devon Healthcare Trust, which runs Torbay Hospital, estimates it will spend more than £160 million in the next 12 months, about £14 million more than it spent last year. The budget contains proposals for service developments costing nearly £4 million, including almost £2.5 million for new technology such as digital radiology. The increase in the trust's income is 2.4 per cent this year, and the proposed spending plans assume the trust can once again make sizeable efficiency and productivity improvements. Last year, it achieved £6.3 million in this way, and this year's target is £8.4 million. The efficiency savings are essential because the trust has once again been allocated the lowest healthcare provider market forces factor in England, which adjusts the amount that the hospital receives under the national funding tariff, and therefore gives it a lower-than-average share in NHS funding. However, the trust is receiving transitional relief for the move to new funding allocations. This, together with the efficiency savings, will total about £14 million, which can be used to meet increased costs and make improvements to services. The South Devon Healthcare Trust's Board held a special meeting yesterday to finalise the capital spending programme for 2006 to 2007. It intends to spend a total of £15.6 million on capital projects, including developing Torbay Hospital as a flagship centre for innovation and training in short-stay surgery. There are only four centres for innovation and training nationwide.
