The Courier & Advertiser (Angus and Dundee)
Robison welcomes NHS Tayside vow to pay back funds
Health board to refund endowment money used to plug deficit
NHS Tayside has vowed to repay charity donations which were used to plug its ailing finances.
At an extraordinary meeting of the health board at Ninewells Hospital in Dundee, members agreed to refund endowment money which had been transferred and “retrospectively applied to the programmes of work” in 2014.
At least £2.71 million, used to fund patient comforts or furnish day suites for families, was used to bankroll “digital healthcare” after a financial deficit was discovered in NHS Tayside’s 2013-14 balance sheet.
NHS Tayside chairman John Brown said: “For our staff and our patients, we believe this is the right thing to do.”
Health Secretary Shona Robison said: “Chief executive Malcolm Wright and chair John Brown have acted quickly to listen to the concerns of patients and staff.
“This move will allow the board to fully concentrate on the important task of increasing public confidence and ensuring long term financial stability.”
NHS Tayside is to refund money from its endowment fund which was used to cover general running costs.
The health board used more than £2 million from its endowment fund – which is made up of donations from the public or bequests in wills – to cover running costs such as funding new technology, which could normally be funded from its core budget.
This was said to have happened when the board was faced with a funding deficit in 2013-14, with NHS Tayside forced to temporarily suspend its constitution to do so as the money was going to retrospectively fund projects already approved.
The revelations earlier this month prompted the resignation of NHS Tayside chairman Professor John Connell, with the Greater Glasgow health board boss John Brown now installed in the job on an interim basis.
The issue was discussed at an extraordinary board meeting yesterday.
Board members agreed to a proposal presented by Mr Brown and NHS Tayside chief executive Malcolm Wright to repay the endowment money which had been retrospectively applied to the programmes of work.
Mr Brown said: “For our staff and our patients, we believe this is the right thing to do.
“The decision made by the board today doesn’t pre-empt the findings of the formal inquiry into Tayside NHS endowment funds by the Office of the Scottish Charity Regulator (OSCR).
“It does mean that we can move forward, start to rebuild confidence and ensure there are no distractions to continuing to do what we do best and that is making sure everyone in Tayside receives high-quality and effective care and treatment.”
Financial problems meant NHS Tayside had to be bailed out with Scottish Government loans totalling £37.5m between 2012-13 and 2017-18.
Health Secretary Shona Robison welcomed the announcement. She said: “Chief executive Malcolm Wright and chair John Brown have acted quickly to listen to the concerns of patients and staff.
“This move to make good on the historic use of endowment funds will allow the board to fully concentrate on the important task of increasing public confidence and ensuring long term financial stability. I have authorised further brokerage to NHS Tayside, subject to confirmation of the value, to allow this to happen.
“NHS Scotland endowment funds operate within legal frameworks regulated by the OSCR and we expect trustees to comply fully with the legislation.
“In addition to writing to all boards asking them to provide assurances that endowment funds are being used appropriately, OSCR has agreed to review the evidence provided.
“Should OSCR determine that spending of endowment funds by any board was inappropriate, I would expect it to be paid back swiftly and in full.”
“This move to make good on the historic use of endowment funds will allow the board to fully concentrate on the important task of increasing public confidence