Highland health chiefs confident £5M overspend can be tackled
The finance director of NHS Highland is confident that the authority can break even, despite a predicted £5m budget overspend.
Board members heard on Tuesday that between April and August, NHS Highland overspent its revenue budget – used for essentials such as staff salaries, drugs and surgical dressings – by £3.4m.
Nick Kenton warned this could rise to £5m by the end of the year but he has drawn up a £4.9m contingency plan approved by the board in Inverness on Tuesday incase the authority cannot balance the books.
It includes using £1.4m from its reserves.
He said: "My current forecast indicates problems with £4.9m by year end. the financial contingency plan in my view should resolve this which is why I am confident that we will break even."
The health authority’s financial problems, after last year’s controversial £2.5m bailout loan from the Scottish Government and the subsequent scrutiny from the Scottish Parliament’s public audit committee, are still in the spotlight.
The so-called brokerage loan must be paid off over a three-year period.
As officials move to deal with the latest overspend, Scotland’s auditor general Caroline Gardner will continue to look into Raigmore Hospital’s budget problems and its three-year recovery plan.
During last month’s Scottish Government annual review of the health authority, chairman Garry Coutts said next year could be one of "stability and confidence", reflecting it was now in a strong position.
