NHS board warns of possible £3m gap in funds

Shetland’s health board may seek “brokerage”, or loan funding from the Scottish Government to plug a gap in its finances projected to be £3 million by the end of the year.

It would be the first time NHS Shetland has failed to live within its budget, the board heard at a meeting yesterday.

According to a quarterly financial report, three-quarters of the overspend, £928,000, is due to staffing costs – principally locum cover.

The board says it “is very likely to be a tough

“The board has already overspent by £1.24 million”

and challenging year in respect of the overall statutory financial obligation to break even” and that “funding does not cover the current service models”.

The board has already overspent by £1.24m for the year to date – 9% over budget, with the annual £3m overspend a “best case” scenario.

NHS Shetland chief executive Ralph Roberts said service redesign had not delivered any savings yet and the board and Scottish Government were due to review the situation after the second quarter of the financial year.

This could include talks about borrowing money that would have to be paid back once savings are made in the cost of running the local health service.

“The position does not look too bad compared to other health boards,” said Roberts, who added that it was nonetheless going to be a very challenging position.