NHS Grampian's ability to meet financial targets 'extremely finely balanced'

The ability of NHS Grampian to meet its financial targets this year is extremely finely balanced, according to the health board.

It currently has a deficit target set by the Scottish Government of £36m, which the health board says it can only give moderate assurances it can hit.

The health board said it will need to make around £40m worth of savings in the next financial year, with £8.6m already made since the start of April.

The savings come on top of the £19m in brokerage funding it has received from the Scottish Government in recent years to help it balance its budget, which it will have to repay at some point.

Bosses have been warned that they will need to find another £38m of savings next year as part of efforts to reduce the level of scrutiny by the Scottish Government in the coming years.

Meanwhile, on two new hospital projects, the Baird Family Hospital and Anchor Cancer Centre, health chiefs say revised opening dates still stand.

It also says work is continuing between the health boards’ solicitors and the contractors on a new commercial agreement, which will include that a number of outstanding issues must either be resolved or have the associated risk accepted.

In March, plans were outlined to save £42m within 12 months, including vacancy freezes and not filling posts if staff leave.

Pressure from pay and general inflation, rising drug costs, new buildings, and service changes were cited as further financial challenges, as well as an ageing population.

The number of people aged 75 and over will rise by 10% over the next five years, creating increasing demand for care.

Among the plans to save £42m announced earlier this year was to give patients cheaper drugs where possible in a bid to save £4.6m, £3.2m to be saved by stopping the use of locum doctors through staff planning and recruitment, and catering staff changes and contract management will be carried out as part of a kitchen reorganisation at Royal Aberdeen Children’s Hospital.

NHS Grampian said there would be no redundancies.

An update on its financial plan will be discussed at a meeting on Thursday.