Region Stockholm Interim Report April 2019
Region Stockholm had a surplus of SEK 624 million before transition costs for the first tertiary period in 2019, which exceeds budget by SEK 585 million. The overall forecast for Region Stockholm indicates that the full-year result is expected to be negative unless action is taken.
The forecast deficit for the full year is SEK 631 million and is largely due to the fact that several committees and companies within the healthcare sector are forecast to report a negative full-year result. The principal reasons for the deficit are increased personnel costs and higher costs for purchased health and medical care services. This mainly relates to activities at Karolinska University Hospital, but also at Danderyds Sjukhus AB and Södersjukhuset AB. Under the new basis of calculation for pensions, the personnel structure entails markedly higher pension costs.
"Strong and immediate action is now required in order to achieve balanced finances and to adapt the cost level to the region's long-term economic conditions. Karolinska University Hospital is currently implementing further significant savings. The initiatives and plans of the affected activities are beginning to fall into place, but they also need to be implemented and executed during the year," says Regional Director Carina Lundberg Uudelepp.
The large investments made within public transport and healthcare entail higher costs for depreciation and interest. This requires continued careful control of the rate of cost growth.
During the period January–April 2019, investment amounted to SEK 3,165 million. "The investment forecast for 2019 is SEK 14,648 million. The large investments made in healthcare are now coming into operation, which means that running costs are gradually rising. New premises will not only enable more activities to be carried out but will also allow working methods to be streamlined and adapted so that the activities are able to benefit from the conditions provided by the new premises and so offset the increased costs," says Carina Lundberg Uudelepp.
Region Stockholm is investing heavily in order to meet the needs of its growing population. Within healthcare, the implementation of the Future Plan for Health and Medical Care continues. The expansion of the Metro and tramway and the upgrading of both the Roslagsbanan Line and the Metro's red line are examples of investments to ensure efficient and accessible public transport in a growing Stockholm region.
The Regional Assembly has adopted eight overall objectives, 30 objectives and 72 indicators in the 2019 budget for Region Stockholm. The tertiary report provides an assessment of the goal attainment for the majority of the indicators under the overall objectives for healthcare, public transport and finance. Of the 20 indicators followed up in the tertiary report, the Regional Management Office considers that twelve will be achieved, four will not be achieved and it is uncertain whether the remaining four indicators will be achieved at Group level by the end of 2019.