Taxpayers to bail out NHS boards with £45m loans
TWO Scottish health boards are facing a ‘financial crisis’, with ministers set to hand over nearly £45million just to keep services running.
NHS Highland and NHS Ayrshire and Arran face ‘significant financial challenges’ as they struggle to make savings and pay off massive debts.
Auditor General Caroline Gardner yesterday said she had ‘serious reservations’ about the ability of the two boards to balance their books, raising concerns over patient care.
In a pair of damning reports she revealed NHS chiefs had already been handed millions of pounds in loans from the Scottish Government – and claimed millions more would be required.
Tory health spokesman Miles Briggs said: ‘The financial crisis that has engulfed our health boards is getting more worrying by the day, and this report shows just how bad things have become.’
He added: ‘This has occurred on the SNP’s watch and they’re the ones who need to get a grip of this situation.
‘For too long they have totally mismanaged our NHS and we’re now seeing the true extent of the damage they’ve caused.’
NHS Highland must make savings of more than £50million, but it has an increasing number of high earners among its staff, Audit Scotland said.
The board may need a loan from the Scottish Government of up to £22million to balance its books for 2018-19.
NHS Ayrshire anticipates it will require £22.4million in loans – although the spending watchdog warned that it might require more.
Mrs Gardner said: ‘Both NHS boards face significant financial challenges, and I have serious reservations about their ability to make the changes needed to achieve financial balance in future.’
Annual reports and accounts for NHS Highland show ‘the number of clinical staff earning a salary of greater than £200,000 per annum has risen to eight individuals (previously four) and of these eight, two are earning in excess of £400,000’, Audit Scotland said. The board must make cuts of £52million in 201819 but there is a ‘significant risk’ that bosses will fail to meet this target, with only £30million of savings having been identified by August this year.
NHS Ayrshire and Arran needs to make savings totalling £26.1million this year, but almost £10million of cuts have still to be found or are classed as ‘high risk’.
Lib Dem health spokesman Alex Cole-Hamilton warned that NHS resources ‘are running out’ and the SNP ‘can’t afford to look the other way’.
John Burns, chief executive of NHS Ayrshire and Arran, said: ‘Financial sustainability has been an increasing challenge over recent years.
‘This has been due to increasing unscheduled care demand, which has required extra hospital beds to be opened, as well as cost pressures including new drugs and agency medical costs to sustain services.’
A spokesman for NHS Highland said: ‘NHS Highland’s financial challenges have been widely reported, and we continue to work closely with the Scottish Government as we develop plans to return to financial balance.’