NHS Shetland is facing a projected financial deficit of at least £1.6m for this year and is in danger of not achieving a balanced budget.
Chief executive Ralph Roberts admitted at yesterday’s board meeting that the figure was a “best case at the moment” as the health board continues to overspend on locum staff while being faced with rising costs.
It is projected that the board has to find savings of around £10 million over the next five years.
Chairman Ian Kinniburgh warned of the dangers of making “knee jerk reactions” to find savings that may have long term implications.
The board will give an update at its next meeting in June where the prospect of asking for last resort brokerage funding from the Scottish Government may have to be raised.
Members of NHS Shetland’s management team met with the government in March to discuss the board’s draft operational plan for 2018/19.
Mr Roberts said at Tuesday’s meeting that the required cost savings for the financial year have not yet been found.
He said that it could be the first time that financial balance has not been achieved while he has been in his role.
A report from Mr Roberts presented to board members said efforts are ongoing to identify where short term efficiency savings and service changes could be found.
There will also be an emphasis for services to find opportunities for new income generation.