Financial Concerns

Protecting the future of St Michael's

St Michael's Hospice is facing the financial uncertainties of the next few years with determination and a belief in the essential nature of the services it provides to the local communities of Hastings & Rother.

In the financial year 2007/8 St Michael's recorded a deficit of £220,000 and this current year are expecting a further deficit of around £400,000.  If this level of deficit is allowed to continue for the next two years then St Michael's Hospice would be in a state of financial crisis and patient care would be jeopardised.  A company wide review of all areas of Hospice activity has therefore been carried out to look at ways of reducing costs and boosting income.  Whilst we do not plan to cut any of our key services which provide support and comfort to those within our care, we need to address the deficit by reducing some of the ancillary costs associated with running the Hospice.

Several immediate cost cutting measures have been brought into play.  Whilst every attempt has been made to prevent such an occurrence, it is with great reluctance that a number of redundancies have been made.  None of these redundancies will affect direct patient care, but it is with a heavy heart that such action has been taken.  For all remaining staff a pay freeze has been instigated for the forthcoming year, meaning no cost of living increase will be awarded.  Taken together these moves will save some £172,000.  Every aspect of expenditure has been, and will continue to be, scrutinised, even to the extent of reducing the size and format of the quarterly newsletter.

By taking some hard decisions now, the aim is to achieve a balanced budget for the next financial year, thereby enabling everyone involved to feel more secure regarding the financial position of the Hospice and its future as a provider of specialist palliative care.  The appeal to raise funds for the programme of capital works, launched last year as part of The Key to the Door Campaign, will be put on hold.  Sufficient funds have been raised to enable essential refurbishment and replacement work to the most urgent areas of concern.  

Hospice Chairman, Julian Avery, said 'We are working hard to protect St Michael's Hospice from being buffeted too strongly by the strong winds of financial insecurity.  It is imperative that St Michael's maintains its high levels of patient care and that we offer as wide a range of specialist palliative care services as possible but at the same time we must ensure that we operate on a sound financial footing.'

Celia Pyke-Lees added 'I would like to reassure everybody that we are making every effort to prevent the need to cut any of our services.  Whilst we will be looking at making our services more efficient by cutting administrative and support costs, we are not planning to reduce the variety of specialist palliative care services that we currently provide.  One change we are introducing is that our Day Therapy service will be reorganised over less days.  This move will not affect the numbers of patients benefitting from the service.  All current Day Therapy patients will of course be personally advised of this change and all will continue to have access to our Day Therapy centre.

We are seeking to increase the amount of money received each year from our various fundraising initiatives and would make a plea to the communities of Hastings & Rother to support St Michael's, whether in terms of a financial donation, offering some volunteer time or simply patronising our high street shops.  A diverse calendar of fundraising activities is already planned for the next two years, hopefully including something to please everyone, from madcap FireWalks to more genteel country strolls, from school mufti days to business luncheons.  We depend so greatly on the generosity of our local communities; please do continue to support St Michael's if, and when, you are able.  Remember, every penny really does count.'