NHS Grampian is facing an “extremely challenging” financial position, a report has revealed.
The health board will be forced to find short-term saving options as it is on course to overspend by £82.5 million this financial year.
The difficult situation will be discussed at a meeting of the board on Thursday.
As well as talking through the financial report, members will be asked to approve measures to save money – including cutting back on bank nursing, overtime and locums.
The report reveals NHS Grampian’s overspend is the largest by value of any health board and the fourth highest in % terms.
Director of finance, Alex Stephen, shared some of the reasons for the expected overspending.
They include the increasing complexity of providing healthcare as people live longer, the cost of new technologies, medicines and services, and recruitment challenges leading to spending on agency staff.
He also highlighted the increase in energy costs and high rates of inflation which have not been matched by funding increases.
NHS Grampian dealing with ‘challenging’ overspending
Members will be told that possible additional savings could reduce the overspending to around £65m.
But the board may be the subject of “enhanced monitoring” by the Scottish Government in future years if it is not reduced further.
As part of his chief executive report, Adam Coldwells will tell board members: “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 responsibility to patients and staff whilst working towards prevention of illness.”
During the meeting, the board will also be updated on The Baird and Anchor Project which is at an “important stage” in construction.
However, the budget for the £26.1m project “remains under pressure”.
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