Warnings have been issued the cash crisis at Health and Social Care Moray could still get worse despite £8.3 million of cuts being approved.
The organisation overspent its budget by more than £10 million last year with funding partners Moray Council and NHS Grampian forced to plug the gap.
Today a recovery plan was approved to try and preserve as many frontline services as possible while still finding savings.
However, finance officials warned uncertainty over funding for some pay increases for staff mean the scale of the task could yet increase.
Nearly £2 million of reserve funds is already expected to be used this year to plug the gaps in books.
‘Change is essential to respond to financial pressure’
Increasing demand for services has been blamed as one of the main reasons for the increasing costs in delivering services with the Moray population increasing in both size and average age.
A volatile market for prescriptions, which make up a large part of the budget, has also added uncertainty to the financial projections.
The crisis has led to senior officials describing the budget as “the most challenging situation” the organisation has faced since its formation.
Simon Bokor-Ingram, chief officer of Health and Social Care Moray, says money alone can no longer solve the cash problems with service transformations the only way to balance the books.
The official, who is stepping down for health reasons this month, said: “Financial pressures and increasing levels of demand mean that services can no longer be provided in the same way.
“A community-focused health and care system prioritised to local need and individualised support is most effective where that support maximises independence, and that is what we are working to achieve.
“We are confident that despite the challenges posed by a significant budget deficit, by reforming our service delivery we will be able to make the savings needed in a sustainable way and with the least possible impact.”
Tracy Colyer, chairwoman of the board which governs the organisation, said: “These savings proposals will enable us to direct our limited resources to deliver more effective, flexible and affordable services.
“Moving forward, we will continue to work together with our staff, partners and communities to listen to and understand concerns and reduce any impact where possible as our recovery plan progresses.”
Savings approved by Health and Social Care Moray
Health and Social Care Moray has approved £8.3 million of budget cuts.
The 33 savings will be phased in throughout the forthcoming year and will be subject to consultation with relevant stakeholders.
- Redesign of services including care at home, vaccinations, inpatient services at Ward 4 at Dr Gray’s, community hospitals, the GMED out-of-hours service and nighttime care for learning disabilities.
- Reviews of car packages, care purchasing, care home bed usage, complex and challenging behaviour units and commissioning and contracts.
- Examining efficiencies with prescriptions.
- Reducing the use of leased buildings and relocating services.
- Efficiency savings in children’s and justice services.
- Reducing transport costs.
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