Health challenge is ‘unprecedented’
Cuts planned as NHS Forth Valley tackles huge deficit
Health chiefs have spelled out the full scale of the financial challenge facing the authority as they prepare to tackle a £58.3million funding gap.
Concerned NHS Forth Valley director of finance Scott Urquhart spoke out at a meeting alongside stand-in chair Allan Rennie, who said the board is facing its biggest challenge in 25 years.
Mr Rennie said: “There should be a health warning with the five-year plan we have produced.
“This is our biggest challenge since devolution.”
Cuts to the budget of £43m are being made in 2024-25, leaving a £14.5m deficit.
Mr Urquhart, presenting the financial plan for the next five years, said: “The scale of the financial challenge over the next five years is unprecedented and given the nature of the current financial environment, it is extremely unlikely that financial balance will be delivered during the timeframe of the revenue plan.”
A break-even position for 2023-24 was achieved in February.
A deficit had been projected, however some £150m of non-recurring funding was given to health boards across the country by the Scottish Government, linked to Barnett consequentials.
NHS Forth Valley had an £8.2m share of that money.
It also had a reduction of £1.9m in Clinical Negligence and Other Risks Indemnity Scheme (CNORIS) costs.
The cuts planned will include £14.4m from the workforce, with non-framework agency staff costs being phased out.
There will also be a reduction in procurement of £328,000 and £4.583m in hospital drugs and devices.
In terms of capital funding, around £6.4m a year should come from the Scottish Government.
The financial plan states there is “a significant level of financial risk” especially in relation to ongoing capacity and workforce pressures which continue to drive increased use of temporary staffing and contingency beds in the aftermath of the pandemic”.
The following four years are equally challenging with a £15m deficit projected for 2025-26, £11.5m for 2026-27, £14.5m for 2027-28 and £15.5m for 2028-29.
There should be a health warning with the five-year plan we have produced