Cash-strapped Edinburgh health chiefs need government cash to cover huge overspend

Edinburgh health chiefs are relying on Holyrood to bridge a £17.8m overspend, according to a new report.

Doctor

A financial update on the Edinburgh Integration Joint Board (IJB), which is a partnership between NHS Lothian and Edinburgh City Council, reveals a degree of uncertainty over the future provision of services due to the financial impact of the coronavirus pandemic.

Through the IJB, the council and local NHS board provide services such as care homes, day services, mental health provision and prescription services.

In July, the IJB agreed a budget of £708.6m for the 2020/21 financial year, but is now forecasting an actual spend of £726.5m, with health and council chiefs banking on the Scottish Government to bail out the joint board.

A report, published ahead of the IJB’s next meeting on Tuesday October 27, indicates it is expecting further government funding, and states: “Towards the end of September, the cabinet secretary announced a funding package totalling £1.89bn to support health and social care costs.

“Of this, NHS Lothian received £78.3m, including £18.1m for the four health and social care partnerships in the area.

“Both the accompanying letter and ongoing feedback from Scottish Government officials emphasised the intention to fully fund the financial impact of COVID-19.

“Until further allocations are received this clearly remains a risk for all health and social care bodies across Scotland.

“Although the updated financial projections provided by partners continue to show an overspend by the end of the year, these do not currently reflect: all the funding either currently confirmed; or funding which has not yet been received, but where the Scottish Government has given a commitment.”

Edinburgh City Council is projecting an overspend of £8.1m on the services it provides for the partnership during 2020/21, including an extra £3.9 on care in the community

The report indicates this is due to the impact of coronavirus, stating: “Initial evidence is that a number of factors are influencing this, including packages being set up to compensate for other services which are not available during the pandemic (e.g. day services); where family and community support is proving more difficult to sustain as lockdown eases and people return to work, and as an alternative to care home placements.”

Meanwhile, NHS Lothian is anticipating an overspend of £9.8m on the services it provides for the IJB, caused largely by an additional £2.2m for general medical services, including GP surgeries, an additional spend of £1m on mental health services and a £2.9m overspend on prescribing.

The overspend in prescription services is caused largely by the scarcity of the antidepressant Sertraline, according to the report.

In addition to the financial pressures exerted on the IJB by the coronavirus pandemic, the joint health board is also trying to make in year savings of £15.9m.

The report adds: “There is a clear risk that agreeing stringent additional savings at a time of significant uncertainty could lead to unnecessary public concern at a time when the country is facing an escalation in the measures required to fight a second wave of the Covid-19 pandemic.”

It goes on to state that a special meeting will be arranged for November, “if required”.

Joseph Anderson, Local Democracy Service

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