FAILURE to make major savings in the coming months could threaten the ongoing viablility of the NHS Western Isles Board.
Director of Finance of the Board, Marion Fordham, reported at their meeting on Thursday they could be heading towards an accumulated deficit of nearly £4m by the end of this year - a shortfall of £1.32m on their original target.
With a deficit of £3
48,000 resulting in an expected £520,000 in year deficit, the ongoing issue of cash shortages is now the Board's 'highest priority' with plans already undeway for further spending curbs.
Members of the Board were also warned that financial balance was essential to the ongoing stability of service provision and that it must be dealt with as soon as possible.
However, admitting that the team is struggling to make the expected savings, Mrs Fordham said: "This is an extremely uncomfortable position to be in. In order to make progress and to balance the books, we must make savings of £3.7m. We have struggled as a team to put together a portfolio of savings plans. I am concerned that we are not going to reach our financial targets again this year."
She added that on the list of current savings proposals, three quarters of proposals involved a medium to high risk.
The financial balance is also vital for the successful delivery of the Clinical Strategy.
Mrs Fordham continued: "We need to focus very carefully on the Clinical Stategy work and change the way we do things with the intention of preserving patient care but we have to streamline what we do. We need to bring in a sustainable financial balance and change the shape of the services we provide without damaging the services we provide to this population."
Chairman of the Board, John Mackay added that they had a 'very difficult situation ahead of us.'
A report before members concluded: "NHS Western Isles has made some inroads into financial recovery during 2006/07 but the pressures faced in 2007/08 present an increasingly challenging target. It is important that all Executive Board members work together in delivering the required savings and that significant progress is demonstrated in subsequent reports in order to give reassurance to both the Board and our stakeholders."
For more on this story see next week's Stornoway Gazette, out on April 5.
