Health board accused of giving 'misleading' financial details

NHS Ayrshire and Arran are responsible for hospitals such as Crosshouse, in Kilmarnock

A health board facing a £56.4m shortfall has been accused of providing "misleading" financial information by a Scottish government official.

Concerns were also raised that a report by NHS Ayrshire and Arran did not "adequately express the seriousness" of their situation.

The details of the correspondence between Richard McCallum, the Scottish government's director of health finance, and the health board, emerged in documents obtained by BBC Scotland News under freedom of information laws.

NHS Ayrshire and Arran said its financial situation had improved since the correspondence last December.

The comments from Mr McCallum followed a report by the health board which stated that they believed they would need less of a loan from the Scottish government than originally thought.

Initial forecasts projected NHS Ayrshire and Arran required a £56.4m loan - called a brokerage - from the Scottish government to cover the 2023/24 financial year.

After seven months that figure had fallen to £54.1m, which the report stated was due to their spending throughout that time being a "slight improvement" on initial projections.

In a letter sent to to the health board's chief executive Claire Burden and financial director Derek Lindsay, Mr McCallum stated that he was "extremely concerned" about how they had reported the situation.

He added that although £54.1m marked a decrease on previous forecasts, this was "misleading" as it did not take into account that a further £5.6m of additional funding from the government had been provided - money that had not been projected to be available when the original figure was predicted.

NHS Ayrshire and Arran require a brokerage of £38.3 million

Further concerns were raised that an "incorrect planning assumption" had led to a shortfall of £7.3m.

BBC Scotland News understands this figure related to money for the New Medicines Fund, provided by the Scottish government.

Mr Lindsay told the BBC the health board had been "more optimistic" regarding that funding than proved to be accurate.

However he stated that the board's financial situation had improved since the correspondence last December.

He added: "As a result of non-recurring funding notified on 15 February, we now anticipate a required brokerage of £38.3m for financial year 2023/24."

The Scottish government said that any feedback was to "ensure transparent and constructive communication" and let them "seek assurance" on how health boards were reducing their deficits.

Earlier this week it emerged that work on the proposed national treatment centre at Carrick Glen Hospital in Ayr had been delayed, after the Scottish government announced that no money was currently available for building schemes across the country.