NHS Highland announces significant financial savings
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NHS Highland surpassed its financial target for 2019/20 after delivering a planned savings programme of £28 million.
A number of cost-improvement schemes have delivered significant results.
NHS Highland director of finance David Garden said: “A wide range of cost pressures were absorbed during the year meaning total savings of £35 million were achieved. Over £16 million of the savings identified are recurrent in nature which makes a considerable contribution to our target to achieve financial balance by the end of 2021/22.”
Recurrent savings are savings which have a benefit beyond the year in which savings are made. They represent permanent change as opposed to one-off savings.
NHS Highland chief executive Paul Hawkins said: “I have never seen the levels of savings achieved by an NHS board of this size in a single year. I want to thank all of the staff across Highland who have worked incredibly hard to deliver these savings.
“Most importantly, this programme of work has been delivered with continued focus on improving health and social care services and with the full support of our staff and stakeholders. We have much work to do but this is a very encouraging start.”
The Scottish Government agreed to support NHS Highland with an £11.4 million bailout in 2019/20, however the success of the savings programme means £11 million will be sought.
This is a reduction of £7 million in the brokerage needed in 2018/19 and further reductions in Scottish Government support are anticipated in 2020/21.
