NHS Highland’s forecast annual budget deficit has risen by £7.1million in the space of a month as the chief executive admitted they were “unlikely” to break even. The ageing population was blamed for at least part of the problem.
The board has overspent its revenue budget by £7.8million in the first five months from April to August.
In July, the predicted budget deficit was £11.1 million but this has risen to £18.2 million. And interim finance director David Garden is forecasting an annual £6.7 million overspend in adult social care alone.
This is despite NHS Highland investing £40 million since the process started to integrate health and social services and deliver on behalf of the council in 2012.
At yesterday’s board meeting in Inverness, chief executive Elaine Mead said this was “significant concern” and funding will need to be sought from Highland Council to continue delivering the services, mainly care at home.
Mrs Mead said: “We are unlikely to break even this financial year and this is a huge disappointment to all of us. Nevertheless, we will do our best to get as close to this as possible.”
Despite the new budgetary pressures, NHS Highland has delivered £20.3 million of savings and identified a further £17.5 million of savings, in a bid to meet their overall annual savings target of £47 million as part of their Quality and Sustainability plan approved in March.
But there is currently a £10 million shortfall in delivering other savings, added to the further budgetary pressures of about £8 million which have been identified.
Interim finance director David Garden also highlighted projected overspends of £2.7 million on locums, both medical and dental, and £1.2 million in drugs costs, as he delivered his report yesterday.
The Scottish Government is working with the board to come up with an action plan.
Non-executive director Ann Pascoe said: “Our population is ageing. Young people are going away and this problem is going to get worse, not better, and how are we between now and March going to find that extra money? We don’t want to cut services for these older people.”
Mrs Mead stressed they need to keep providing the “significant investment in adult social care” but find other ways to make savings by “remodelling care.”
Board chairman David Alston also floated the idea that more financial scrutiny is needed and that a board finance governance committee should be established.
After the meeting Mr Alston said: “I remain confident in our Quality and Sustainability Plan but we have not been able to make some of the changes fast enough.
“Nevertheless, the savings made to date are remarkable and the skill and dedication by our staff is acknowledged by the board.”
