Five areas of blame as Fife health costs soar by £5.5million

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Costs keep piling up for Fife’s Health and Social Care Partnership (HSCP). As of September, it is £27.1 million overdrawn – an increase of £5.5 million since July.

According to Audrey Valente, chief finance officer, five main areas are to blame: Additional packages of care are being commissioned (£1.6 million); a reduction in the amount of savings deliverable by the end of the year (£1 million); additional staffing and agency costs (£1.1 million); GP prescribing costs continue to rise (£800,000); and Scottish Government funding reductions across mental health (£500,000).

Regardless, it’s becoming more and more likely that NHS Fife and Fife Council will both be called on to help fund the gap by the end of the financial year.

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“All efforts will be made to reduce the overspend position, however it is likely that there will be a requirement to implement the risk share agreement which requires overspends to be funded by partners at the year end,” Ms Valente’s report said.

Costs keep piling up for Fife’s Health and Social Care Partnership (Pic: Fife Free Press)Costs keep piling up for Fife’s Health and Social Care Partnership (Pic: Fife Free Press)
Costs keep piling up for Fife’s Health and Social Care Partnership (Pic: Fife Free Press)

A recovery plan was agreed at the end of October, and that is intended to deliver up to £13 million worth of savings through service cuts and reductions, but even if it is fully delivered, it won’t bridge the £27.1 million gap.

“The agreed plan will not fully deliver a break-even position in financial year 2024-25 and there is a requirement for further dialogue with partners,” Ms Valente emphasised. It is likely that the risk share agreement will require to be implemented.”

The partnership exists as a joint Fife Council and NHS Fife group responsible for the management and development of health and social care services in the Kingdom. Its annual budget is funded jointly by the two bodies.

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Each year, they sign up to the Integrated Joint Board (IJB) risk share agreement – an arrangement ensuring that overspends will be covered.Whe n there’s an overspend within the IJB, the first step is for the organisation to work with both on a financial recovery plan However, if no further work can be done, that’s when partners need to step in.

According to Ms Valente, a letter has already been sent to both the council and NHS Fife from the chair of the IJB requesting whether any additional payments can be made this year. Neither has yet responded. However, the risk share agreement has been flagged up by both the council and NHS Fife as a “significant” risk for both organisations, which each have their own separate financial pressures.

“There will be continued close monitoring of the projected outturn position during 2024-25,” Ms Valente’s report said.

“We will ensure there is robust scrutiny of any spend throughout the financial year to ensure effective financial management of the resources available to the IJB. The senior leadership team will work with their services to ensure continued opportunities are sought and that only essential spend is incurred.”

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She continued: “As a result of the financial challenges faced by the IJB, we have increased the frequency of meetings with both partners and the chair and vice chair of the IJB. Financial sustainability is a priority, and we recognise the valuable contribution that our key stakeholders can provide.”

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