Trusts' debts threaten Scottish acute review

In a debate on the continued financial problems at Tayside University Hospitals trust, Scottish deputy health minister Malcolm Chisholm acknowledged that current and future acute reviews may be hampered by deficits.

Dr Richard Simpson, Labour member of the Scottish Parliament's health and community care committee, said: 'Tayside is bedevilled by the funding issue and the board has lost the trust of the people over this. '

The recent acute services review in Tayside indicated a shift towards centralising acute services in Dundee's Ninewells Hospital, with the closure of some facilities in Perth and Stracathro. But the review did hold the promise of a new£20m facility to be located 'somewhere in Angus', conditional upon the existing deficit being removed.

A trust spokesperson said: 'The trust is going to achieve its target this year of reducing debt by£6. 8m, leaving an overall deficit of£8m. ' The£6. 8m reduction includes£4. 8m of debt incurred in the current financial year.

Lothian University Hospitals trust has revealed a£6m deficit comprising an historic debt of£4. 3m and a year-on-year debt of£1. 7m, which will result in around 200 jobs being lost.

Allister Stewart, the trust's chief executive, told HSJ: 'There is more money than ever being paid into the NHS in Scotland but there are also greater costs in terms of pay rises, the working-time directive, new treatments and procedures. 'I would like to see a greater understanding by the Executive. . . that a simple inflation increase in budgets does not work with an organisation like a large teaching hospital. '

Meanwhile, Grampian University Hospitals trust anticipates a yearend deficit of£2. 5m, bringing its debt up to£5m, 2. 4 per cent of overall budget.

A spokesperson for Audit Scotland said 'the financial pressures on trusts are likely to continue into the next year and this is an area which we believe is a cause for concern'.

Jim Devine, Unison's head of health in Scotland, said the Executive was not adequately funding many of its latest initiatives.

'There is a pay increase of 4. 1 per cent, which trusts have received 3. 4 per cent to cover; the workingtime directive funding is£20m for all trusts, when even the most conservative estimate is it will cost around£45m to fund a year. '

A spokesperson for the Scottish Executive said record sums of money were being put into the NHS in Scotland and that there were no plans to clear any debts accrued by trusts.