Forth Valley NHS to make £36m of budget savings
NHS Forth Valley is planning to make £36million of savings over the next three years.
This week the board signed off its annual accounts for 2018/19 with a clean bill of health.
However, its five-year financial plan shows that in order to continue to meet financial targets, millions of pounds’ worth of savings will have to be made.
NHS Forth Valley has prided itself in keeping on top of its finances and meeting financial targets but, like many health boards, is now finding it increasingly challenging.
In a board paper, the health board admits there “is an inherent level of risk associated with delivering cost reductions of that scale”.
But it says that due to “rapidly changing population demographics and technological and medicines development, the status quo is no longer sustainable or affordable”.
As a result, the health board is adopting a new approach to ensure vital services that it provides continue to be financially sustainable.
A spokesperson for the health board said: “Several key areas have been identified to help achieve these savings, many of which will improve outcomes for patients. These include delivering better value by reducing waste, improving efficiency and reducing variation.
“Opportunities for digital developments and innovation will be maximised, including more virtual and telephone clinics to avoid unnecessary outpatient appointments and work will continue to further reduce spend on bank and agency staff.”
NHS Forth Valley chief executive, Cathie Cowan said: “Healthcare services need to be sustainable and affordable so, alongside our ambition to deliver further improvements, we also need ensure we make the best use of the resources available and plan ahead to meet future demand.
“In the last 18 months since I took over as chief executive I have seen many examples of innovative work, great patient care and excellent services. This is reflected in the recent improvement in our performance in seven of the eight key national standards.
“I am keen to build on these achievements whilst acknowledging what needs to be better, working closely with our staff, partners, patients, volunteers and community organisations to improve healthcare for our local population.
“To help support this improvement work, the dedicated team set up to take forward the expansion of theatre, diagnostic and inpatient care at Forth Valley Royal Hospital, will be expanded to help drive forward change, spread good practice and monitor progress across the organisation.”
Scott Urquhart, NHS Forth Valley’s director of finance, said: “Like many other health boards across the country, we continue to face challenging financial times due a number of pressures including rising drug costs and increasing demand.
“As a result, we estimate we will need to make around £36million of savings across the organisation over the next three years to ensure we continue to deliver a balanced budget each year.
“We aim to achieve this through a wide range of initiatives designed to reduce waste, deliver the best value from the available resources and maximise the use of new technology across the organisation.”
This week, the board met briefly to approve the annual accounts for 2018/19. It reported a surplus revenue out-turn of £0.217 million, a balanced capital out-turn, and achievement of the cash requirement.
The approved annual accounts for 2018/19 will be made public in the autumn.