Health chiefs have warned a £3.5 million overspend on local services in Dundee and Perth is too high to be absorbed by cash-strapped NHS Tayside coffers.
Dundee and Perth and Kinross’ integration joint boards were created under the Scottish Government’s flagship policy to bring council and health board budgets together to deliver more care in the community.
At a meeting of NHS Tayside bosses on Thursday, acting finance director Stuart Lyall confirmed the two bodies are expected to overspend this year by so much it has now reached “a level we cannot absorb within our funding”.
The health board, which has suffered from significant financial woes in recent years, forecasts an overspend of its own budget of around £11.2 million – although this remains in line with existing projections.
It was able to absorb an £800,000 share of overspend by the Perth and Kinross Integration Joint Board in September because services were already ahead of plan.
But Mr Lyall warned it would not be possible for a further £2.8 million share run up by the two joint boards, £2.1 million of which relates to spending on services in Dundee, to be wiped out by NHS Tayside funding.
The finance chief said the health board’s financial outlook for the first six months was generally positive but external deficits could put the achievement of targets at risk.
He said: “One of the significant risks is the positions of the Integration Joint Boards, particularly the Dundee Integration Joint Board and particularly around the spend on social care.”
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Mr Lyall confirmed he is working with partners on the joint boards to bring the spending under control but concerns have been raised over whether the issue can be resolved in the five months remaining to draw up plans for the next financial year.
David Lynch, chief officer of the Dundee Integration Joint Board, and Gordon Paterson, his counterpart for Perth and Kinross, confirmed they are working to deliver recovery plans for their respective areas.
NHS Tayside chief executive Grant Archibald reaffirmed his commitment to balancing the books at the health board within three years, which he insisted was a key requirement of his role.
He said: “Clearly the successes of the integration joint boards and our own successes are interlinked. We already have bi-weekly meetings with the teams and we will work with the rest of our colleagues to address this.
“From meetings (with health secretary Jeane Freeman), it is clear overspending is not an option for anyone in Scotland and I think that is fair. We remain committed to delivering a balanced budget.”
