Manx Care budget 'some way adrift' of recommended levels

Manx Care was set up in 2021 to run the island's health service

Manx Care's budget is "some way adrift" of the levels recommended when the healthcare provider was created two years ago, its chief executive said.

Accounts for the current financial year suggest it is on track to post a £27.2m overspend due to an ongoing deficit, rising pay levels and other pressures.

Teresa Cope said Covid-19 and wider economic issues had "significantly" impacted Manx Care's finances.

She said stories about overspends were "demoralising" for "dedicated" staff.

"We always want to protect spend on frontline care, but overall costs and inflation are creating a real significant cost pressure," said Ms Cope.

'Difficult decisions'

Manx Care was set up in 2021 as an arms-length body by the Isle of Man government to take over the day-to-day running of health services from the Department of Health and Social Care (DHSC).

The restructure was recommended in a review by former NHS Foundation Trust chief executive Sir Jonathan Michael.

This followed a series of overspends by the DHSC.

Manx Care is currently spending about £80m less than what Sir Jonathan anticipated health services on the island would need to continue to improve, according to a report by its finance director Jackie Lawless.

Ms Cope admitted the budget given to Manx Care by the Isle of Man government did not reflect the challenge of trying to improve services while dealing with high inflation and rising staff costs.

A cost recovery programme has seen Manx Care save £10m last year by increasing productivity and efficiency, with a target to find a further £4.5m this year.

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