Scottish Government bails out NHS Grampian with £67 million loan
NHS Grampian has been loaned more than £67 million by the Scottish Government to tackle the largest overspend of any NHS health board across Scotland.
The board accepted the loan to plug the overspending ahead of a board meeting on Thursday, where bosses are expected to discuss the health board's financial positions, as well as approving a £39m savings plan.
NHS Grampian is one of 14 regional health boards in Scotland and manages two hospitals, Aberdeen Royal Infirmary (ARI) and Dr Gray's Hospital in Elgin.
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Chief executive Adam Coldwells warned last September that the health board was suffering from 'sustained and continuing pressure', with a critical incident being announced in November.
Health board papers, seen by STV News, state the impact of NHS Grampian's position "is a major risk for the National Health and Social Care Health budget".
It further states: 'This brokerage will require to be repaid to the Scottish Government once the Board returns to financial balance, [and it] takes total brokerage repayable to the Scottish Government to £92.2m.'
Discussions on Thursday are to focus on how to reduce the overspending to £45m or less by this time next year. This is the amount of time the Government has given the board.
However, current forecasts expect the health board to exceed the maximum deficit by £23m.
Several factors are contributing to the financial crisis of NHS Grapmian, including the rising cost of healthcare, staffing, employer National Insurance contributions, as well as energy, food and maintenance bills.
Three Health and Social Care Partnerships for Grampian which overspent their budgets in 2024/25, which NHS Grampian paid an extra £24.7m to cover.
The health board claims this is due to an increase of 9% in the number of over 65s in the last five years – the highest percentage increase in the older population across Scotland.
A spokesperson for NHS Grampian said: 'This increase is driving the system pressures within our Health Board and our Health and Social Care Partnerships."
On the government load, a spokesperson said: 'We will continue to work with Scottish Government, our staff, stakeholders, and the people to Grampian, to ensure NHS resources are used appropriately and savings are realised wherever possible."
It comes as a financial review, commissioned by ministers, is taking place and should be concluded by the end of next month.
It is hoped the review will identify areas in which additional savings can be made.
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