NHS’S £4.7m Covid-19 bill

Extra costs for April to June revealed

Covid-19 cost NHS Forth Valley an additional £4.7 million for the three months from April to June 2020.

The pandemic has put a further pressure on the health board delivering its five-year £20.6m savings plan to break even.

NHS Forth Valley’s finance chief outlined the cost implications of Covid-19 in a report which was scrutinised by members of the board at a virtual meeting last week.

Director of finance Scott Urquhart provided an overview of the financial impact to date and the associated financial risks. His report was discussed at a private virtual board meeting of NHS Forth Valley on Tuesday, July 28.

On March 31, NHS Forth Valley’s board approved a five-year financial plan which included a savings requirement of £20.6 million to break even.

But many of the actions to achieve those savings have had to be paused as a result of the pandemic.

The report revealed: “The risk on savings delivery directly resulting from Covid-19 delays has been quantified at approximately £10m.”

The board is now working on how to progress its savings plan and “reprioritise new ways of working to introduce efficiencies and improved value across services.”

NHS Forth Valley has submitted its Covid-19 costs to the Scottish Government but has rated the financial implications at the highest level of risk as red.

The report said: “There is a risk that Covid-19 mobilisation plan costs are not fully funded and that subsequent infection rates will impact on the board’s ability to meet its financial targets.”

The report also highlighted a risk the “anticipated Scottish Government funding allocations including those required to meet winter pressures, cannot be met in full.”

NHS Forth Valley expects to have the position confirmed in mid September.

The costs for the three-month period from April to June 2020 amount to £4.673 million which include costs incurred with testing, staffing, cleaning, equipment, creating additional capacity and cross boundary flow.

In his report, Mr Urquhart said: “Expenditure levels remain under ongoing scrutiny and review and resources require to be used to their maximum potential.”

The board has also begun identifying cost estimates relating to Covid-19 for the remainder of the financial year. It is anticipated the cost will increase if there is a “significant resurgence” in Covid-19.

A spokesperson for NHS Forth Valley said: “We have identified additional costs due to the pandemic and we are planning on the basis that these will be funded in full by the Scottish Government.

“Work is also underway to identify additional cost estimates for the remainder of the financial year.”

Expenditure levels remain under ongoing scrutiny and review