NHS Tayside needs to make £58 million of savings in 2024/25

dailyrecord.co.uk:

NHS Tayside will start the new financial year faced with having to make at least £58 million of savings.The health board's assistant director of Finance has said Tayside has "difficult choices" ahead as it seeks to plug a mammoth financial gap.A draft version of NHS Tayside's 2024/25 financial plan went before the board on February 29 with the final version submitted to the Scottish Government by the deadline this week on March 11.A financial report by the health board's assistant director of Finance Karen McKay outlined the situation facing NHS Tayside.In December 2023 the Scottish Government capped NHS Tayside's brokerage for 2024/25 at £25 million.In her report Ms McKay said: "This was the maximum financial deficit that SG [the Scottish Government] will accept from the Financial Plan in Year One.

Year Two and Year Three must demonstrate break-even."NHS Tayside has an opening financial gap of £83 million in 2024/25. Due to the brokerage limit of £25 million, the health board will be left with making £58 million of savings over the course of next year.Ms McKay said: "The recurring deficit of £65.2 million, plus ongoing additional non-recurring pressures and anticipated growth in 2024/25, results in an opening financial gap of £83.0 million.

Against an original brokerage limit of £25.0 million, the minimum savings required in 2024/25 is £58.0 million."NHS Tayside will receive £7.8 million from the New Medicines Fund which will be used to reduce the original brokerage cap of £25 million to £17.2 million.Ms McKay explained: "The additional New Medicines Fund support since notified to the board does not change the £58.0 million savings requirement, it simply reduces the available brokerage cap."She added: "The range of