NHS Grampian’s board is poised to be updated on its “extremely challenging” financial position.

 

As part of his chief executive report, Adam Coldwells will speak ahead of a paper regarding the board’s financial position. He will tell board members: “For NHS Grampian, which has a proven track record for financial rigour, not being able to set a balanced revenue budget is incredibly frustrating and will require some challenging decisions to be made over the months ahead. “However, we remain committed to making these whilst balancing our financial position with our responsibility to patients and staff whilst working towards prevention of illness.”

 

In a paper to the board, director of finance, Alex Stephen reports that the board is currently expecting to overspend by £82.5million this financial year. Mr Stephen reports that reasons for the overspend include the increasing complexity of providing healthcare as people live longer; the cost of new technologies, medicines and services; recruitment challenges leading to spending on agency staff; increases in energy costs; and high rates of inflation which have not been matched by funding increases.

 

Members will be told that possible additional savings could reduce the overspend to around £65m but that the board may be the subject of “enhanced monitoring” by the Scottish Government in future years if the overspend is not reduced further.

 

The board will be asked to note the report and approve measures - including reducing spending on bank nursing, overtime and locums, while implementing vacancy control – to achieve additional savings.

 

Another item will see members updated on The Baird and ANCHOR Project. A paper by project director Colin Adam states: “The project is at an important stage with construction works to the ANCHOR Centre nearing completion, and works to the Baird Family Hospital progressing.”

 

Members will also be advised that it is expected the ANCHOR Centre will be allowed to proceed to its commissioning KSAR phase is the coming months. Mr Adam notes that the budget forecast for the £261.1m project “remains under pressure”.

 

The board will also be updated on the Bed Base Review. Members will be told NHS Grampian historically has the “lowest bed base in Scotland” in terms of beds per head of population and steps proposed to increase it. The report, by programmes lead Carrie Stephen, will add The Centre for Sustainable Delivery Discovery found that “NHS Grampian is already one of the most effective unscheduled care systems in mainland Scotland” whilst operating with a “significantly smaller bed base” than other boards.

 

Members will be told the next stage of the bed base project will rely on space freed up in Aberdeen Royal Infirmary once the Baird and ANCHOR open. The board will also be updated on various aspects of the board’s performance and Agenda For Change non-pay reforms.