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NHS Highland facing £2.2million shortfall

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NHS Highland has admitted it risks failing to meet its financial target by £2.2million this year.

The board previously faced criticism after it emerged that executives had sought a £2.5million loan from the Scottish Government in 2013/14 to help it break even.

At a meeting next week, finance director Nick Kenton will explain that contingency plans totalling £2.7 million are in place to cover the anticipated shortfall this year.

He will say: “An absolute focus will be required over the final two months to ensure these are delivered.”

However, Mr Kenton will add: “My overall view is that a break-even on revenue can still be achieved.”

The director’s report to the board will show that in the nine-month period from April to December 2015, NHS Highland overspent its revenue budgets by £2.4million.

He will say it could miss its break-even target by £2.2million, and that there could be a further £500,000 of “financial risks that may crystallise in the remainder of the financial year”.

The board is expected to break-even on its capital budget.

David Alston, who will take over as board chairman in March, played down previous financial challenges at the authority after his appointment last month.

“There was never any serious issue about financial management,” he said.

“I don’t see this as a significant issue for the future. There certainly will be financial challenges ahead and these will be common to Scotland.”