News / NHS funding shortfall
NHS SHETLAND must find savings of more than £1.8 million by the end of this month to pay for its share of the joint community health and social care service it runs with Shetland Islands Council.
On Thursday, the new Integration Joint Board heard that it had only budgeted £43.745 million for next year, when the final bill will be £45,606 million.
The council will meet its share of the cost, almost £21 million, for services including community care that makes up around half of its contribution at more than £10 million.
However the NHS, whose contribution covers costs such as pharmacies and prescribing, is struggling to meet its share of the bill.
Chief financial officer Karl Williamson explained that NHS Shetland’s government funding for next year was rising by 1.7 per cent, but this did not match inflation.
“We need to generate savings each year to remain in financial balance,” he said.
“Every year there is a target to be achieved and the board has not managed to achieve savings in past years, so they have accumulated.”
The NHS has never gone over budget, but has only met shortfalls in the past through keeping job posts vacant or selling off property.
Eventually the financial strain is likely to have a direct effect on services, Williamson suggested.
Community health and social care director Simon Bokor Ingram is due to present a report on how the funding gap will be filled at the next integration board meeting on 29 February.
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