NHS Grampian cuts ordered by Scottish Government as estimated shortfall grows by £24.5 million
NHS Grampian has proposed more multi-million-pound cuts to tackle its “extremely challenging” financial situation, on the orders of the Scottish Government.
An NHS Grampian Board meeting on Thursday is set to consider £17.5 million of cuts, after the latest estimates showed that the health board is on track for a shortfall £23.5 million larger than expected.
A cash gap of £82.5 million has now been predicted - nearly 40 per cent more than the £59 million it provided to the Scottish Government in March.
In response, NHS Grampian was ordered to take “immediate action to improve the position” and reverse its growing cash gap.
However, with £39 million of cuts already agreed this year, the new savings package will still miss the target by £6 million.
In a report to be presented at Thursday’s meeting, chief executive Adam Coldwells said the ballooning shortfall means that “we need to go further”.
He added: “As the finance update being received today shows, the landscape in which we are providing care remains extremely challenging.
“For NHS Grampian, which has a proven track record for financial rigour, not being able to set a balanced revenue budget is incredibly frustrating and will require some challenging decisions to be made over the months ahead.
“However, we remain committed to making these whilst balancing our financial position with our responsibilities to patients and staff whilst working towards the prevention of illness.”
Another document released ahead of the meeting pins the increased deficit on an ageing population; the cost of new technologies, medicines and services; agency staff being used to ease recruitment difficulties; rising energy costs; inflation and a lack of funding.
The extra savings are to be found through reducing the costs of bank nursing, overtime and locums, alongside “vacancy control”.
Meeting documents show that Dr Gray’s Hospital overspent by more than £4 million in the four months up to July 2024.
Between June and July, the hospital’s shortfall increased by more than £1 million.
A document titled The Context for Change was also released ahead of Thursday’s meeting, stating that NHS Grampian requires “radical change”.
“Without systematic and planned change, already stretched services will undoubtedly be forced into unplanned change through fire-fighting and crisis,” it adds.
“The stark options we are faced with are either to resist change and see services deteriorate to the point of collapse over time, or to embrace transformation and work to create a modern, sustainable health and care service that is properly equipped to help people stay as healthy as possible and to provide them with the right type of care when they need it.”
