Scottish Government 'concerned' over NHS Dumfries and Galloway financial picture
The Scottish Government has expressed 'concerns' at the financial situation at NHS Dumfries and Galloway.
Health chiefs are forecasting an overspend of £28 million in the current financial year.
And that has led to officials in Edinburgh moving the health board to the third stage of the NHS Scotland Support and Intervention Framework.
It had been on level two of the five step model since November 2023.
In a letter from NHS Scotland chief executive Caroline Lamb to NHS Dumfries and Galloway boss Julie White – which will be presented to Monday's health board meeting – it is explained the move is being taken due to 'concerns about the financial sustainability of the board'.
Over the past three years, the health board has received £58 million from the Scottish Government in brokerage, which will be repaid once the health board breaks even.
Ms Lamb's letter states that the £26.2 million provided last year was 'the highest brokerage requirement as a proportion of total budget across NHS Scotland'.
And the £28 million overspend predicted in 2025/26 is 'the highest of any NHS board as a proportion of total budget'.
Ms Lamb notes that the support provided following the move to stage two has been 'beneficial' but 'there has been insufficient improvement in financial sustainability'.
Moving to stage three means 'enhanced monitoring and support', including 'increased oversight from Scottish Government together with increased engagement with the NHS Scotland finance delivery unit'.
Last October, the then finance director Katy Kerr predicted escalation to stage three was 'inevitable'.
Interim finance director Susan Thompson's report for Monday's meeting says a £28 million overspend is expected in 2025/26 against a Scottish Government cap of £25 million.
The financial plan has been accepted by Holyrood on the basis 'that any unexpected in year benefits are used to bridge the £3 million gap with any in year pressures being managed within existing budgets'.
The approved financial plan contains a savings target of £21.6 million – more than the record £20.1 million the health board saved last year.
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