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Risk of financial failure of Aberdeen health and social care services upgraded to ‘very high’

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Civil servants have warned health and social care services are at “very high risk” of financial failure in the pandemic.

Members of the Aberdeen Integration Joint Board (IJB) will be briefed on the situation next week and are expected to be told demand “outstrips” its budget.

“Very high” is the uppermost of the risk level its officials use when assessing threats to the organisation.

The IJB governs the Aberdeen City Health And Social Care Partnership, which is responsible for running GP practices, mental health services and care facilities.

Financial staff, upgrading the risk level, said that without additional funding services on offer in Aberdeen may be reduced or stopped.

A report going to the board on Tuesday forecasts “tough choices” ahead over the coming years if more money is not incoming.

It states the IJB’s appetite for financial risk is low, but members should recognise it has an even “lower appetite for risk of harm to people”.

Scottish ministers awarded £1.85 million to the board in May to cover extra costs during the pandemic but “a significant part” of that has now been used to support work during the crisis.

Due to the uncertainty with regards to how much longer the pandemic will last, chief finance officer Alex Stephen told members: “The IJB will notice that the risk has been raised from ‘high’ to ‘very high’ to emphasise that until the funding and costs for Covid-19 are confirmed the risk of a financial shortfall in relation to the IJB finances is increased.

“If the levels of funding identified are not made available to the IJB in future years, then tough choices would need to be made about what the IJB wants to deliver.

“It will be extremely difficult for the IJB to continue to generate the level of savings year-on-year to balance its budget.

“The major risk to the IJB is the level of funding delegated from the council and NHS and whether this is sufficient to sustain future service delivery.”