Written Question · S2W-03300 · Session 2
How much accumulated revenue over-expenditure has been incurred by NHS Boards since 1999; on what terms it has written off any such amounts…
The question
To ask the Scottish Executive how much accumulated revenue over-expenditure has been incurred by NHS Boards since 1999; on what terms it has written off any such amounts incurred by boards, in particular NHS Tayside, and whether it has any plans to offer a similar write-off to NHS Argyll and Clyde once that authority has demonstrated its ability to bring its revenue expenditure within its allocation.
The answer
In 2001-02 the Scottish Executive allocated an additional £90 million to NHS boards to accelerate theimplementation of Our National Plan: A Plan for Action, A Plan for Change.The £90 million formed part of the Finance Minister’s end year flexibility settlementand was distributed across all NHS boards. First call on this funding was, as apriority, the clearing of all cumulative deficits which had arisen since April2001. Hence using these resources, seven NHS trusts had their cumulativefinancial deficits of £41 million written off as shown in Table 1.
Table 1: Cumulative FinancialDeficits Written Off During 2001-02
NHS Trust
| £000
Argyll and Clyde Acute Hospitals NHS Trust
| 3,305
Renfrewshire and Inverclyde Primary Care Trust
| 1,077
Grampian University Hospitals NHS Trust
| 4,914
North Glasgow University Hospitals NHS Trust
| 9,491
South Glasgow University Hospitals NHS Trust
| 4,092
Highland Acute Hospitals NHS Trust
| 2,744
Tayside University Hospitals NHS Trust
| 15,852
Total
| 41,205
When the funds weredistributed, Susan Deacon stressed that this was a one off exercise which wouldnot be repeated. The funds were provided to give a clean slate to the new unifiedNHS boards and to provide a real opportunity to develop initiatives flowingfrom Our National Plan. It was stressed that NHS systems and in particularaccountable officers must ensure that future deficits were not accumulated.
Since 2001-02, 3 NHS boardareas have incurred revenue deficits at trust level; Argyll and Clyde,Grampian and Lanarkshire. As at 31 March 2003, the accumulated financialdeficits are as outlined in Table 2.
Table 2: Accumulated FinancialDeficits as at 31 March 2003
NHS Board Area
| £000
Argyll and Clyde
| 9,635
Grampian
| 4,829
Lanarkshire
| 10,169
Total
| 24,633
The Scottish Executive does not have any plans to write off the above balances. The HealthDepartment is working closely with boards in the development of their financialrecovery plans, which demonstrate how the board areas will return to recurringfinancial balance and repay any accumulated financial deficits.
Table 1: Cumulative FinancialDeficits Written Off During 2001-02
NHS Trust
| £000
Argyll and Clyde Acute Hospitals NHS Trust
| 3,305
Renfrewshire and Inverclyde Primary Care Trust
| 1,077
Grampian University Hospitals NHS Trust
| 4,914
North Glasgow University Hospitals NHS Trust
| 9,491
South Glasgow University Hospitals NHS Trust
| 4,092
Highland Acute Hospitals NHS Trust
| 2,744
Tayside University Hospitals NHS Trust
| 15,852
Total
| 41,205
When the funds weredistributed, Susan Deacon stressed that this was a one off exercise which wouldnot be repeated. The funds were provided to give a clean slate to the new unifiedNHS boards and to provide a real opportunity to develop initiatives flowingfrom Our National Plan. It was stressed that NHS systems and in particularaccountable officers must ensure that future deficits were not accumulated.
Since 2001-02, 3 NHS boardareas have incurred revenue deficits at trust level; Argyll and Clyde,Grampian and Lanarkshire. As at 31 March 2003, the accumulated financialdeficits are as outlined in Table 2.
Table 2: Accumulated FinancialDeficits as at 31 March 2003
NHS Board Area
| £000
Argyll and Clyde
| 9,635
Grampian
| 4,829
Lanarkshire
| 10,169
Total
| 24,633
The Scottish Executive does not have any plans to write off the above balances. The HealthDepartment is working closely with boards in the development of their financialrecovery plans, which demonstrate how the board areas will return to recurringfinancial balance and repay any accumulated financial deficits.
In the Official Report
No contribution in the Official Report cites S2W-03300 by reference.