The chairman of the NHS Highland is confident that the authority can break even by the end of the year despite a predicted £5million budget overspend.
Garry Coutts made the comments as the north health board discussed their financial position at a meeting in Inverness yesterday.
NHS Highland exceeded its revenue budget by £3.4million between April and August this year.
Finance director Nick Kenton said that the overspend could reach £5million by the end of the year.
Contingency plans have now been drawn up in case the board cannot balance the books by the end of the financial year, including using £1.4million from its reserves.
And Mr Kenton warned that further contingencies of around £3million are needed to mitigate any further risks.
But chairman Garry Coutts said: “Yes, I am confident we can break even. We have got the plans in place. We know if we keep on pursuing quality and efficiency programmes they do deliver results and it is the right thing to do for patients.”
Board members agreed yesterday that efforts should be focused on securing efficiencies and reducing costs by revisiting the original financial plan.
Elaine Wilkinson, chairwoman of the health and safety committee, said: “I think it’s essential we draw up the plan for the additional £3million and this £4.9million and have it actioned.”
Myra Duncan, chairwoman of the health and social care committee, said: “We need to understand why the existing financial plans are not delivering and what the barriers are.”
After the meeting, Mr Kenton said: “What we need to do is revisit our plans and if we can get our existing plans delivered, then the contingency plan will shift to the right and cover us for potential further risks.”
The revenue budget covers regular expenditure, such as staff salaries, medication and surgical dressings. NHS Highland’s capital budget, used for one-off projects, has been underspent over the same timescale by about £300,000.