NHS Tayside finances are ‘unsustainable’

Urgent action is needed to address NHS Tayside’s financial position, according to the Auditor General.

Caroline Gardner published her fourth consecutive report on the health board earlier this week, noting its worsening financial position and significant challenges to meeting its financial and performance target.

This all comes amid ongoing changes to the make up of its leadership team, with NHS Tayside appointing its third chief executive of the year last week.

In her report, Ms Gardner says service redesign is critical to reducing the health board’s expensive operating model and high staff costs, and said she found little evidence to suggest the situation has improved since her last report.

NHS Tayside has needed £50.2 million in loans from the Scottish Government since 2012/13, and £45.9 million of this has still not be repaid although this has now been written off.

A further £12.7 million of brokerage was received in 2017-2018, and according to the Auditor General’s report, more will be required in the future.

According to the report, the board’s poor financial position is party due to the mismanagement of eHealth and endowment fund monies in previous years.

The report highlights a deteriorating performance, with just seven national standards out of 20 being met this year.

Ms Gardner also notes mistakes relating to the departure of NHS Tayside’s former chief executive Lesley McLay who left the organisation in July this year with a £90,000 settlement package.

She left NHS Tayside as it was revealed charity cash had been used to upgrade the health board’s IT systems.

Since then, two more chief executives have been appointed this year and a recruitment exercise is currently underway to appoint a new chair before the end of the financial year

Ms Gardner said: “NHS Tayside’s financial position has been unsustainable since 2013 and urgent action is needed to turn around the organisation. Changing the ways services are delivered will be critical in reducing NHS Tayside’s operating model and comparatively high staff costs. However, to date there is limited evidence of this happening, increasing the need for effective leadership to drive home the board’s plans for change.”

The report concluded: “The interim chief executive and chair and the new director of finances are working to review and update the processes and plans in place to address the financial pressures facing NHS Tayside.

“NHS Tayside urgently needs to set out its medium-term financial plans and how it intends to achieve service reform and further reduce its operating costs.”

The PA asked NHS Tayside to comment, but it had not replied by the time we went to press.