NHS Tayside will be forced to find £16.5 million in cuts in addition to the more than £37m already identified in its draft budget rejected by the Scottish Government.
The health board was told it would be required to reduce its spending after the SNP government was “unable” to agree a financial plan submitted earlier this year.
Senior insiders warn the cuts will harm patients.
One said staff felt they were “trying to fill a bucket with a hole in it”.
In its response to the draft budget, the government told NHS Tayside it would have to meet its “brokerage cap” by finding a further £20.4 million in cuts.
This was reduced to £16.5m after a further £3.9m in in-year funding was provided to protect planned care.
The cap represents the amount the health board expects it will spend in response to demand compared to the funding grant it receives from government.
Taken together, that means health chiefs will have to find a total of £54m in savings.
The Courier has been told there is now significant concern additional capacity cannot be create to tackle backlogs.
An NHS Tayside source warned it was the “wrong time” to cut as the recovery from the pandemic continues.
“This will ultimately worsen patient outcomes,” they said.
‘It’s like trying to fill a bucket with a hole in it’
“You’ve got to remember so much was cancelled during Covid-19 and we’re currently just trying to catch up on that while the same level of new demand arises with no new money.
“It’s like trying to fill a bucket with a hole in it.”
A second source said they did not know where the cuts would come from but that there is simply “not enough money” coming from Holyrood to fund the NHS and social care services.
‘Difficult choices’ coming for NHS Tayside
Finance director Stuart Lyall told the board members at NHS Tayside that the current £83 million funding gap is “significantly more” than the savings requirement imposed by government.
While he said there was a “level of confidence” that the savings will be achieved, the board will have to consider “difficult choices”.
Dundee-based Labour MSP Michael Marra, who represents the North East, said: “The impact of budget cuts to NHS Tayside will be felt in cuts to frontline services and longer waiting times.
“With almost one in six Scots stuck on an NHS waiting list, further cuts could not be coming at a worse time.
“Amongst the political turmoil of the last fortnight, the SNP have emerged saying more of the same will do just fine.
“But people across Tayside know that is not good enough.
“As demand continues to rise, our NHS urgently needs the right resources for the job.”
A Scottish Government spokeswoman said the £14.2 billion provided to the NHS represented a real-terms increase of 3%.
She said: “The budget takes NHS Tayside’s overall funding for 2024-25 to over £951.2 million.
“Despite our significant investment, the system is under extreme pressure as a result of the ongoing impacts of Covid, Brexit, inflation, and UK Government spending decisions.
“The Scottish Government is in ongoing contact with all health boards to address the financial challenge.
“This includes scrutiny and challenge of financial plans and agreeing actions to support recurring savings and financial sustainability.”
Conversation