The Scottish Government has been warned of a “financial catastrophe” in the NHS due to crippling funding pressures.
Documents seen by our sister paper, the Daily Record, show NHS Lanarkshire is facing a £70m budget black hole after declaring a staffing and bed shortage crisis.
Health chiefs at the organisation warned there is a “very high” risk of being unable to maintain essential services while balancing their budget.
Labour MSP Monica Lennon said the NHS is at breaking point: “The health service across Scotland is facing an unprecedented financial catastrophe.”
NHS Lanarkshire, which serves over 600,000 patients, recently moved to ‘code black’ status over mounting pressures to deliver health services.
A new board paper, seen by our friends at the Record, reveals the full extent of the cash crisis. The board’s financial plan for this year initially forecast that a balanced budget would require £38.2m of savings.
But a “marked deterioration” in the financial picture has increased the estimated gap to £69.2m. According to the document, the reasons for the increase include less Covid cash from the Scottish Government than the board was expecting.
Acute services, such as accident and emergency, are projected to be £16.3m over budget, while rising inflation and soaring energy costs have added another £9.1m.
Around £29m in potential one-off savings have been identified, but the paper warned that using these now would carry risk. NHS Lanarkshire also claimed that no “brokerage” loans, which have been approved in the past, will be made available by the Scottish Government.
With the Government also asking for backlogs in operations to be reduced, NHS chiefs said it is “highly unlikely” breakeven can be achieved.
Lennon, who represents Central Scotland, said: “Health Secretary Humza Yousaf must take his head out of the sand and provide NHS Lanarkshire with an emergency funding package.
"The Government cannot play games with people’s lives.
“These alarming revelations show NHS Lanarkshire, which has already declared a ‘code black’ emergency, is now in crisis.
“The Scottish Government has under funded the health service and put staff and patients in an impossible situation for too long.”
Laura Ace, Director of Finance at NHS Lanarkshire, said: “Due to rising cost pressures, we are currently facing significant financial challenges in the current year.
“Our overriding priority as we address these challenges is to continue to deliver safe and effective patient care.
“To achieve this we are working with colleagues, both in NHS Lanarkshire and nationally, to develop financial plans that help meet the current challenges.”
Tory MP Sandesh Gulhane said: “This dire financial report from NHS Lanarkshire is just more proof that the SNP is failing our NHS.
“With winter fast approaching, Humza Yousaf must take urgent action to get funding and resources to the frontlines, so that our hardworking NHS staff can continue to deliver the essential healthcare services we rely on.
“The Health Secretary must not continue to ignore the long-term, structural problems – like poor workforce planning – that have grown up under this SNP Government.
"We need to see real action to address these issues, or the SNP will have no hope of tackling backlogs and improving patient care.”
A Scottish Government spokesperson said:“We recognise that all public services face significant pressures as a consequence of Brexit, the Covid pandemic, and inflationary costs driven by increasing energy prices.
"We are delivering record funding to our National Health Services and we are working with all health boards to support their work to deliver sustainable frontline services.”
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