NHS Grampian overspends by £17m in three months

NHS Grampian's projected overspend for the financial year is £55m

Cash-strapped NHS Grampian overspent by more than £17m in three months earlier this year despite finances at the health authority coming under increased scrutiny.

Board papers suggest the current forecasted overspend for this year is £55m which is £10m more than Scottish ministers have allowed for.

NHS Grampian was escalated to Stage Four of the five-stage NHS Scotland National Performance framework in May this year, amid concerns over its financial stability, leadership and governance.

External auditors from KPMG have been conducting an operations review which is expected to be published in the coming weeks.

Papers published ahead of a board meeting on Thursday said NHS Grampian's overspend for the three months up to June was £17.17m.

The report said: "NHS Grampian has been experiencing significant financial pressure for some time driven by inflationary increases on our cost base, the financial impact of operational pressures as a result of an increase in patient acuity, demand for services post Covid and the need to reduce waiting lists.

"These pressures are being experienced across the whole of health and social care sector within Grampian with significant financial pressure from the integration joint boards driven by largely the same factors."

The health authority said new cost pressures worth an extra £4m not included in a financial recovery plan included "higher than anticipated energy charges".

A rapid review of savings plans is being carried out to try to ensure financial targets can be met.

The board meeting on Thursday will hear escalation to Stage Five of the National Performance Framework is possible if NHS Grampian is not able to demonstrate the required improvements.

New chief executive Laura Skaife Knight will shortly take charge amid the ongoing pressures.