MSP increasingly concerned over NHS Highlands financial problems

3rd December 2015

Highlands and Islands (Labour) MSP Rhoda Grant is becoming increasing worried about the financial state of NHS Highland and the effect on staff and patients.

Yesterday continuing concerns were raised by some MSPs at the Scottish Parliaments public audit committee, commenting on the decrease in locums and the local authoritys policy over not filling some staff vacancies.

Mrs Grant, who represents the Highlands and Islands, said her concern was heightened by a report to the local authority's board on Tuesday where its director of finance Nick Kenton revealed there was a risk that it may not meet its year-end target of breaking even on revenue to the tune of £3.2million.

Mr Kenton said: In addition there are around £1.9million of further financial risks that may crystallise in the remainder of the financial year.

Mrs Grant says: The report goes on to say contingency plans totally £5.1million are required in order to break even on revenue spending - which covers day to day spending such as staff salaries, drugs, surgical dressings .

It is revealed that contingency plans of £2.6million in place but a further £2.5million are required to break even.

That figure worries me despite the finance director saying it is achievable with five months left of the financial year.

Problems with finances are happening year after year with NHS Highland and the overspend at Raigmore Hospital is a continuing factor. Something has to give.

Mrs Grant said she recognised the health authority had strengthened its financial management but the problems still existed.

While NHS Highland did receive an uplift in funding they are still required to pay back the brokerage they received in previous years which also leads to the financial pressure they are under. Given that brokerage was given in years when NHS Highland were not receiving their full funding formula allocation, it would be reasonable for that brokerage to be written off. If this happened NHS Highland would be in a much stronger position financially, she adds.