NHS Grampian overspends by £17m in first three months of financial year

Key Points

NHS Grampian has overspent by £17m in the first three months of the financial year to June 2025
The health board has had the highest overspends of any NHS body in Scotland
It owes £92.2m to the Scottish Government
NHS Grampian must make £23m in cuts to bring it within the acceptable level of deficit
It has outlined measures including cutting appointments as ways of saving money

NHS Grampian has overspent by £17m in the first three months of the financial year despite being forced into a cost-cutting recovery plan by a huge funding black hole.

The health board, which racked up the largest overspend of any board in Scotland, has already announced plans to cut the number of public holiday appointments in a bid to save cash.

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

The health board was told to produce a plan to find the savings required by June 7.

In papers published ahead of a board meeting on Thursday, August 14, NHS Grampian reveals it has already overspent by £17.17m since April.

An assessment of the board’s finances reveals £10m in savings have yet to be made in accordance with its recovery plan.

Officials say if these cuts are not delivered there is “a risk” NHS Grampian won’t be unable to fulfill the Scottish Government’s demands.

“The scale of the financial challenge faced by the Board is significant”, the papers state.

“It is recognised that we now need to review our approach to financial monitoring to support the Board’s financial recovery.”

NHS Grampian admits that progress on savings has been “below target” and there is a risk of £9.7m not being made.

Previously, NHS Grampian warned it would struggle if costs increase, with “no flexibility” to manage them.

The Scottish Government has increased oversight of NHS Grampian, raising it to stage four out of five of NHS Scotland’s National Performance Framework.

The Government has already loaned the health board around £90m to help it break even in recent years.

NHS Grampian’s overspend last year was around £65m, the largest in value terms of any health board in the country, and fifth in percentage terms.

Government officials previously said they were “concerned” about its financial position.

The proposed savings included cutting some appointments and services on public holidays, changing the type of vascular stent used for some patients and the ending of providing disposable nappies to “well babies” born at maternity units.

However, the board has since U-turned on the cuts to nappies.

NHS Grampian said it couldn’t rule out that some patients would be impacted by the savings.