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NHS Highland board hit back at Holyrood accusations

Nick Kenton has been appointed director of finance and corporate services at Highlands and Islands Enterprise.
Nick Kenton has been appointed director of finance and corporate services at Highlands and Islands Enterprise.

Furious NHS Highland board members have hit back at Scottish Parliament accusations of “gross misconduct”, accusing ministers of making scapegoats of local health bosses

A row has erupted this week after chief executive Elaine Mead and finance director Nick Kenton were summoned before the audit committee to explain their actions.

The pair failed to advise the board that a £2.5million loan – known as a brokerage – had been obtained from the Scottish Goverment in February this year, the committee was told on Wednesday.

The money was needed after it became clear that NHS Highland would not break even at the end of the financial year, but MSPs said they had treated members “like mushrooms” by keeping them in the dark about the board’s precarious finances.

However, board members defended their governance last night, accusing ministers of trying to “micro-manage” their affairs.

Highland councillor David Alston laid the blame with the Scottish Government, saying: “NHS boards have an obligation to break even and have no ability to carry forward underspends or overspends from one year to another.

“NHS Highland was trying to achieve break even against a background of under-funding by Scottish Government to the extent of £11.3million.”

He said the possibility that the board might not balance the books was discussed with the government in December 2013 and again in February this year.

Mr Alston said: “Board members were made aware of the extent of the financial challenges facing NHS Highland. I believe that more should have been reported to the board but it is wrong to scapegoat the chief executive and director of finance.

“NHS Boards can only operate effectively if they are freed from micro-management by Scottish Government ministers and officials and allowed to find their own route to delivering the best health service for their areas, within the budgets available.”

NHS Highland chairman Garry Coutts said he welcomed the opportunity to speak to public audit committee.

He added: “I have been disappointed at some of the criticisms levelled at us and wish to outline exactly what happened with regard to brokerage.”

He said the deal was agreed on March 6 and made public on March 26 when board papers for the April 1 meeting were published.

He added that staff and senior management team were “always open and accessible to board members, local and national politicians, members of the public and the media”.

Mr Coutts said: “We have regular meetings with MSPs throughout the year, at which we answer any questions they may have. All meetings of the board and its key committees are held in public and all financial information is reported as timeously as possible.”

Last night, a Scottish Government spokesman restated its position, saying: “In line with our monitoring and support to all boards, there were regular discussions with NHS Highland throughout 2013/14 about the board’s financial position.

“Brokerage was only offered towards the end of the financial year. Disseminating information about the financial position to individual board members is the responsibility of executive members of the board.”

Other board members have defended Ms Mead and Mr Kenton, including John McAlpine, an Argyll and Bute councillor.

He said: “To say that board members were ‘treated like mushrooms’ and kept in the dark is not correct. We do see financial statements on a monthly basis and it is up to board members to scrutinise that information.

“Board members were aware that brokerage was being applied for. At what point in the financial year that was, I’m not sure.”

Non executive NHS Highland board member, Alasdair Lawton, added: “I certainly don’t feel I have been kept in the dark and I would dispute that we were complicit in a lack of proper governance.”