25.07.18
NHS Highland faces £25m deficit, calls for ‘need to engage’ with government
NHS Highland is at risk of overspending its budget by almost £25m and might need to request the help of the Scottish Government, board papers show.
Following the region’s board meeting yesterday, it was revealed that NHS Highland’s annual savings target of £51.5m, with achieved and forecast savings of £27m already secured, left the region with a shortfall of £24.5m— including £19m in unidentified savings and £5.5m from the Argyll and Bute area.
The figures also showed that the health authority overspent in its budget by £8.1m in months since the new financial year in April.
The region noted that it will “need to engage” with the government on how to balance the books and prevent an overspend.
In its conclusion, the document said: “Whilst brokerage has not been formally approved at this stage, the government have published an estimated £19m in their new reporting arrangements to Parliament.
“Efforts are required by operational managers to ensure that savings delivery meets the planned trajectory and that the final outturn is closer to £19m or below. It is anticipated that the forthcoming two months will be key in identifying the success of the savings programme for 2018-19.
“Within the Highland Partnership, delivery of the forecast position is predicated on the achievement of savings and containment plans for three key areas of adult social care and drugs and prescribing with many schemes forecast to be achieved in future months.”
Labour’s health spokesman and Highlands & Islands MSP David Stewart told the Press and Journal: “Everyone who works for NHS Highland and every patient who needs treatment and health care should be greatly concerned that yet again there is a predicted overspend.”
David Garden, NHS Highland’s interim director of finance, said the region is “not in a position” to assume a financial break-even position for 2018-19.
He added that the board should “recognise the continued need for a longer term sustainable service plan, supported by appropriate financial and workforce plans.”
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