Abstract

In response to the rapid deterioration in provider finances in 2015/16, a new financial framework was introduced in an attempt to recover deficits and re-establish financial discipline within the sector. Each provider, irrespective of their financial position, was asked to sign up to a control total – a financial target – setting a minimum surplus or maximum deficit they had to meet. In exchange for meeting financial control totals and performance targets, providers would receive their share of a new £1.8bn in sustainability and transformation funding (STF).