Advisory group sent in to NHS Tayside amid financial woes

Independent advisers have been appointed to help NHS Tayside meet “prolonged and considerable” financial challenges.

A report from Audit Scotland last year found the health board needs to make savings of around £175 million over the next five years.

The Scottish Government – which has provided financial bailouts to Tayside – has now appointed an Assurance Advisory Group to provide expertise on financial planning and “transformational change” to the board’s management team.

The Government said the measure, known as independent assurance, is part of its approach to helping NHS boards.

The group will be chaired by Professor Sir Lewis Ritchie and will report back to Paul Gray, chief executive of NHS Scotland, within three months.

Audit Scotland said NHS Tayside, which received loans totalling £24.3m from the Government over the last four years, was facing “prolonged and considerable” challenges.

Its potential budget deficit for 2016-17 stood at £11.65m, according to the auditor’s October report, with bosses faced with making “unprecedented” savings of £58.4m during that period.

Over the next five years, savings of £175m will need to be made, the report found, while NHS Tayside will also have to repay £20m of loan cash to the Government.

Mr Gray said: “NHS Tayside has put in place a transformation programme to deliver improved services to patients and better cost effectiveness. This plan sets out how the board will achieve financial balance.

“I am confident it will help NHS Tayside to put in place the steps required to achieve a sustainable financial balance.”

Professor John Connell, chairman of NHS Tayside, said: “The board of NHS Tayside welcomes the support which will be provided by the Assurance Advisory Group.

“The wealth of experience of the members will bring further external perspective to the planning and delivery of our transformational programme.”