Struggling NHS GRampian health board faces deficit of £76m next year

NHS Grampian is facing another ‘significant financial challenge’ next year with a projected deficit of more than £70m.

In papers to be discussed by the health board later on Thursday, the Director of Finance says initial projections show a deficit of £76m for the financial year 2026/27.

The health board says it has been told it cannot have an overspend of more than £36m if it is to receive brokerage funding from the Scottish Government.

NHS Grampian has already borrowed more than £92m from the Government to plug a financial black hole, although that money doesn’t need to be repaid until its finances are balanced.

The papers reveal another £40m of savings will need to be found during the coming financial year, on top of around £62m of savings this year.

NHS Grampian has been facing a financial crisis for some time, with Scottish Government officials previously saying they were “concerned” about the financial position at the health board.

The health board has been placed into stage 4 of the Scottish Government ‘support and intervention framework’ which means there is additional oversight from officials and an independent review was carried out.

It was told it could not have a deficit of more than £45m pounds by the end of this financial year, with the board expected to hear on Thursday that target will likely now be met.

Chief executive, Laura Skaife-Knight has described that as an “incredible achievement and the result of continued hard work across the organisation.”

The board has previously said many things are contributing to its current financial crisis.

The cost of providing healthcare, staffing, changes to employer National Insurance contributions, energy bills, food and maintenance costs have all increased.

The health board has also been warned its deficit levels will need to reduce in coming years if it is to be allowed support funding again from the Scottish Government.

The papers, say, “The level of deficit support funding will also reduce from £36 million in 2026/27, to £25 million in 2027/28 and £15 million in 2028/29.”

The health board will also hear the cost of a new maternity hospital and cancer centre in Aberdeen has risen.

The Baird Family Hospital and Anchor Cancer Centre were due to open in 2020 and cost around £160m.

It is now likely to cost more than £438m, with the cancer centre opening this summer and the family hospital opening in June 2027.

Although those are only target dates and the board has been warned in the papers, “dates for bringing each building into operation will be subject to review on a weekly basis.”

The project has been hit by issues with water and ventilation systems and design issues.

NHS Grampian has been told it must submit a final financial plan to the Scottish Government by the 16th of March.