MSP calls on health secretary to take action against NHS Tayside

Health board misrecorded funds to mask true depth of financial crisis

Conservative north-east Scotland MSP Bill Bowman has called on the health secretary Shona Robison to “get a grip” on NHS Tayside’s finances.

He said the Scottish Government ought to put NHS Tayside in special measures after it emerged that digital healthcare funds were used to mask the true depth of the financial crisis at the health board.

NHS Tayside has had to rely on loans from the Scottish Government – known as brokerage – to balance its books each year since 2012.

It has emerged it has been using funds earmarked to develop digital healthcare to mask the true scale of its overspend each year.

The practice only came to light this month after it was discovered £5.3 million of eHealth funding had been misrecorded.

A report by independent auditors Grant Thornton found NHS Tayside’s director of finance Lindsay Bedford and the director of finance at NHS National Services Scotland (NSS), which passed on the eHealth money to the health board, were both aware of the practice.

The report stated: “We have significant concerns around the practices being followed by NHS Tayside in relation to the use of funds to offset expenditure to which the funding had not been provided.”

NHS Tayside has required £37m of loans from the Scottish Government since 2012, including £4m this year.

It now has to find another £5.3m of savings, but has already been told it may struggle to find the £44.5m of savings required in 2018-19.

NHS Tayside chief executive Lesley McLay said an internal review is under way and the board will be updated on its progress on Thursday.

Scottish Government health secretary Shona Robison added: “While there has been a lack of transparency in financial reporting arrangements and failures in governance processes within NHS Tayside, this independent report found that the money was still used for the delivery of healthcare.

“The financial position of NHS Tayside is still very concerning and the board continues to face significant financial difficulties.

“Patient care and safety is paramount, which is why the Scottish Government will continue to work with them and provide additional brokerage to ensure stability.”

However, Mr Bowman said Ms Robison should be “castigated” for suggesting it was acceptable to “window-dress” the books if it is for healthcare.

He said the Scottish Government should consider putting the health board into special measures – a step only taken as a last resort when health boards are failing to make the necessary improvements.

These measures can include replacing management personnel if deemed necessary.

He said: “There is a way for Ms Robison to get a grip of this escalating situation.

“The Grant Thornton report is not explicit in exactly who knew what, and when – it is clear more detective work is needed.

“A full independent investigation would be needed to see why this has happened.

“In the interim, I ask the SNP whether they are considering special measures to ensure money is not being spent without proper checks and controls.”

Dundee-based Labour MSP Jenny Marra, convener of the Scottish Parliament’s audit committee, which will grill NHS Tayside bosses on Thursday, said: “£5.3m is a huge sum of money to be ‘mis-accounted’.

“It is another glaring example of financial chaos and poor governance at NHS Tayside.”