The forecasted full-year surplus for 2019 is expected to amount to SEK 386 million before transition costs, which can be compared with the budgeted annual surplus of SEK 140 million.
“The outcome for Region Stockholm after the first eight months of the year means that the forecast now indicates a positive result for the full year,” says Katarina Holmgren, Finance Director.
The forecast for Region Stockholm as a whole is thus for a result in balance just as in previous years. The full-year forecast indicates a cautious positive result compared with the previous forecast, which showed a negative result. A number of committees and companies continue to report negative forecasts for the year and strong measures are needed to maintain an economy in balance and adjust the cost level to the region's long-term economic conditions. At the same time, the annual forecast has improved on the back of increased revenues.
The forecast includes poorer financial results for committees and companies within healthcare, where the largest negative deviation from budget is forecasted for the Karolinska University Hospital, which is implementing significant cost-cutting measures to create better structural conditions going forward without affecting the quality and accessibility of the healthcare provided.
“The economic challenges remain for a number of committees and companies within healthcare, resulting in continuous intensive efforts to deliver on expanded action plans to be able to achieve an economy in balance. In order to secure a long-term payment capacity and to be ready for lower tax revenues as well as increased costs for the cost equalisation scheme, we must ensure to have solid financial results this year and in the years to come to be able to continue to deliver high quality and accessible healthcare and public transport for our residents,” says Katarina Holmgren.
The surplus for the period, excluding transition costs, amounted to SEK 2,908 million. The surplus including transition costs amounted to SEK 2,735 million. The positive deviation in reported surplus is SEK 1,005 million compared to budget. Transition costs refer to restructuring costs for the provisioning of future health and medical care.
Revenues during the period amounted to SEK 16,047 million, which can be compared with the budgeted SEK 15,593 million. Total tax revenues, including general government grants and contributions to the equalisation scheme, amounted to SEK 54,387 million, which represents an increase of 4.6 per cent compared with the same period last year.
The full-year forecast for total tax revenues is SEK 81,581 million.
Total cost for the period in terms of operating expenses, depreciation and financial expenses amounted to SEK 67,748 million. This corresponds to a cost increase of 4.6 per cent compared with the same period last year, which is slightly lower than the budget of 5.1 per cent and explained by lower capital expenditures. Staff costs increased by 4.3 per cent which is not sustainable in the long-term thus needs to be lowered.
For 2019, investments are forecasted to amount to SEK 13,964 million, which is equivalent to a conversion rate of 89 per cent. The new investment forecast is explained by postponements in certain projects. Region Stockholm has invested SEK 7,041 million during the period, which corresponds to a 45 per cent conversion rate in relation to the annual investment budget.
About the interim report
The interim report covers the goal attainment of Region Stockholm’s operations, except for those only evaluated on a full-year basis, and the financial outcome and annual forecast in relation to budget.