Scottish health board facing 'unprecedented' £77m financial blackhole

The chief executive of a Scottish health board has warned it faces its toughest financial challenge to date.

Dr Adam Coldwells, interim boss of NHS Grampian, has forecast it will need to achieve savings of more than £77 million in the coming financial year.

The comments were made as part of his chief executive report set to be put before the board on Thursday.

He said the medium-term financial plan will be set out in April but he warned the health board is likely to continue to experience an “extremely challenging financial landscape”.

His report said: “Whilst we are at an advanced stage in our financial planning for 2024/25, our forecasts anticipate a more challenging year for all health boards than we ever previously experienced.

“Indications are that NHS Grampian will be required to identify and achieve savings in excess of £77 million.

“The scale of this challenge is unprecedented and cannot be underestimated.”

The report states the scale of financial reduction will be achieved through a mix of “close day-to-day spending, significant focus on organisation-wide areas of high expenditure, and transformation driven by clinical services”.

In the short-term, staff are encouraged to “play their part” by using resources efficiently.

The report is also expected to outline the “disappointment” of NHS Grampian at the Scottish Government’s decision to pause capital projects including work on the region’s national treatment centre.

Dr Coldwells said any capital funds received from the Government for 2024/25 will now be spent maintaining the existing estate and essential equipment replacement programmes.

Plans to refurbish the mental health ward at Dr Gray’s Hospital in Elgin will also be reviewed.

The Scottish Government has been asked for comment.