Hiring locum doctors to fill medical vacancies forced NHS Orkney to take out its fourth Scottish Government loan in five years, Scotland’s top auditor said yesterday.
The islands health board has now borrowed more than £5million to help it break even and will not have repaid it in full until 2018.
Caroline Gardner, the Auditor General for Scotland, said that weaknesses in financial management had contributed to the need for a loan to plug a budget gap in 2013-14.
Ms Gardner said that, in common with NHS Highland, the board did not produce detailed plans to tackle the problem.
And a “lack of capacity” meant that staff from NHS Fife had to be drafted in to resolve the issue.
The head of finance left and was not replaced until last month.
But the main reason for the loan was the increased spending on locums, from £1.06million in 2012-13 to £1.38million in 2013-14.
Despite recruitment campaigns the board has been unable to fill some positions and has to use locum doctors and agency nurses.
Ms Gardner said this was a pressures which would affect NHS Orkney’s ability to meet savings targets in long-term.
She added: “The board is taking appropriate action to improve its financial position and its financial management. However, it still faces significant challenges making the savings to meet its financial targets.
“The board has set out its plans to break even in 2014-15, but it continues to place a high reliance on non-recurring savings which may not be sustainable in the longer term.”
Cathie Cowan, NHS Orkney chief executive, said “NHS Orkney met all its financial targets for 2013-14 by breaking even on both its revenue and capital budgets, whilst also receiving an unqualified audit opinion on the accounts.
“The board does however accept the recommendations in the report and continues to work both internally and with the government in response to the issues raised on financial management.”