NHS Grampian 'confident' it can meet savings target after £17m overspend

The chief executive of NHS Grampian has said they are “absolutely confident” it can meet its savings target, as the health authority’s finances come under increased scrutiny.

On Tuesday, it was revealed that the health board had overspent by £17m in the first three months of the financial year – and were on course to spend £10m more than set out in its recovery plan.

NHS Grampian owes the Scottish Government £92.2m and needs to make £23m in savings to come within its overspend limit.

While a plan to try and find millions of pounds of savings has been created, they’re still on course to overspend by £55m this year.

The overspend is £10m more than the Scottish Government has allowed for and £10m more than the health board said in its financial recovery plan.

Dr Adam Coldwell’s, interim chief executive of NHS Grampian, said the board is “absolutely confident” they will make the target savings required.

He told STV News: “For this financial year, NHS Grampian has to make £62m pounds of savings, and we’ve had quarter one update that was given to the board today.

“We’re not quite on target with the delivery, but I remain absolutely confident that the remedial action that we’re taking will deliver £62m worth of savings in this financial year.”

‘Board in chaos’

Despite the authorities confidence, the financial and clinical pressure has shown little sign of easing.

NHS Grampian has overspent by £17m in the first three months of the financial year – the highest forecast overspend by value and 3rd highest in percentage terms.

The health board has identified millions in savings – already announcing plans to cut the number of public holiday appointments – but there’s a warning some of those are already off track, and it’s forecast to be more than £9.5m short.

Despite the Scottish Government already providing a loan to the health board, they have been urged to step in and provide more support.

On Thursday, the Conservatives wrote to the health secretary asking what more the Scottish Government will do.

Douglas Lumsden MSP described the situation as a “board in chaos”.

“This has been going on for far too long now,” he said. “We hear stories about ambulances waiting outside the hospital, huge, long waiting lists as well, and it just seems to be getting worse and worse all the time.

“I’ve been asking Neil Gray if he’s got confidence in the board because I certainly don’t but I think he needs to step up and take some action.

“I think they really need to step back and look at it again and see where more assistance is required because the plans that are in place are obviously not working.”

The Scottish Government has already escalated its oversight of the board, and there’s a warning that could go further.

A recent review has been conducted by the firm KPMG on behalf of the Scottish Government – it’s created a draft report to help find possible savings.

It’s understood it’ll be published soon.

The health secretary says appropriate support is being given to NHS Grampian to ensure in-year financial pressures are managed and patients continue to receive high-quality care.

Neil Gray said: “We are working very closely with NHS Grampian to improve financial sustainability, and I am being kept updated regularly on the situation.

“The health board has agreed targets with the Scottish Government in its financial recovery plan and a new chief executive will shortly take up post to provide clear strategic direction.

“We are also providing appropriate support for Grampian to ensure in-year financial pressures are managed and patients continue to receive the high-quality care and treatment they need.”