Balancing NHS Dumfries and Galloway finances set to be 'even more challenging' in 2026/27
Officials fear balancing NHS Dumfries and Galloway's books could be 'even more challenging' next year.
The health board needs to make more than £21.3 million worth of cuts in 2025/26.
But the nature of some of the savings identified means things are already looking tricky for 2026/27.
Interim finance director, Susan Thompson, told Monday's health board meeting: 'A significant portion of the current 2025/26 financial plan relies on delivering non-recurring savings and funding.
'This means that these savings are one-offs which do not apply going forward, and that makes improving next year's position even more challenging.'
The cuts needed this year exceed the £20.1 million worth of savings made last year – which was itself a record amount.
Ms Thompson added: 'Following the delivery of record savings in 2024/25, the board must now build on this and deliver its most ambitious programme of savings during 2025/26 - equating to over £21.3 million.
'While the current position is challenging, we remain confident that through working with our clinical and operational teams, we will recover the position.'
The approved financial plan has an overspend of £28 million – more than the £25 million limit set by the Scottish Government.
That saw NHS Dumfries and Galloway moved to the third stage of the NHS Scotland Support and Intervention Framework for finance – having been on stage two since late 2023.
Stage three involves enhanced monitoring, additional support, and increased oversight from the Scottish Government.
Efforts are underway to return to stage two as soon as possible.
A letter to the health board from the Scottish Government said the move was being taken as they had 'concerns about the financial sustainability of the board'.
Reasons given for the increasing deficit include higher building running costs, increased staffing, new IT systems such as Office 365 and difficulties in maintaining consistent efficiency savings.
The deficit has been building over the past decade, driven by a combination of factors. These include difficulties in maintaining consistent efficiency savings, alongside rising inflation which has increased the cost of clinical supplies and services.
Other pressures include increased staffing to continue delivering safe and effective care, a growing volume of prescribed medicines, higher building running costs – such as gas, electricity, water, and rates – and increased spending on care provided by other boards when it can't be delivered locally.
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