03.10.18
Audit raises ‘serious reservations’ over two NHS health boards’ £20m budget gaps
Scotland’s public spending watchdog has raised “serious reservations” over the finances of two health boards who both face funding gaps of over £20m.
Audit Scotland found that NHS Ayrshire and Arran and NHS Highland have been unable to deliver their services within budget and have required a total of £38m in loan funding from the Scottish Government.
The auditor general Caroline Gardner reported “significant financial challenges” at the two health boards, and both also face multi-million-pound projected shortfalls in the next few years.
NHS Ayrshire and Arran faces a budget gap of £22.4m this year and required £23m in ‘brokerage’ loan funding to cover the cost pressures in 2017-18.
But the report says that the board will not be able to balance its budget by 2020-21, and has no plans to repay the loans to the Scottish Government.
NHS Highland has an expected funding gap of between £19m and £23m in 2018-19, having needed £15m of government funding last year, and is producing a longer-term recovery plan.
But the report has expressed “serious concerns” about its ability to deliver the savings needed to achieve a balanced budget by 2020-21.
Gardner said: “Both NHS boards face significant financial challenges, and I have serious reservations about their ability to make the changes that are needed to achieve financial balance in future.”
The auditor of the overall financial health of NHS Scotland is expected later this month.
NHS Ayrshire and Arran said it was committed to delivering safe, sustainable services within its £800m budget.
It said “financial sustainability has been an increasing challenge over recent years,” and pointed to its transformational change programme created two years ago, which may take several years to see financial benefit.
In July, NHS Highland reported a £25m deficit and, following the region’s board meeting, it revealed an annual savings target of £51.5m.
In January, NHS boards in the north of Scotland said they had no plans to merge and bring services together, after the struggling NHS Tayside said would be continuing to “work closely” with five other Scottish health boards.
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Image credit - sturti