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Health / NHS chief issues warning over financial impact of Covid-19, Brexit and winter

NHS Shetland chief executive Michael Dickson. Photo: Chris Cope/Shetland News

THE CHIEF executive of NHS Shetland has warned that the challenge on the health board’s finances this coming year “cannot be underestimated” – with Covid-19, Brexit and the winter all causing concern.

Michael Dickson told a meeting of the health board on Tuesday that leaving the European Union could bring a detrimental impact to the NHS.

“It’s going to be a challenging target,” he said of the financial outlook for the year ahead.

“I think it’s going to be incredibly difficult.”

A paper presented to Tuesday’s meeting on the budget for 2020/21 showed there is a projected £2 million funding gap, with £1 million of this brought forward from the previous year.

There will be around £67 million in income over the year but expected total expenditure sits at £69 million.

The figures do not take into account the response to Covid-19, with the Scottish Government yet to allocate funding to cover additional costs to health boards.

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NHS Shetland finance director Colin Marsland said that the exact cost impact of Brexit is still unknown.

But Dickson said the mix this year of Covid-19, the winter and Brexit is a worry for the health board’s finances.

He added that it remains “unclear” what funding will come to NHS Shetland from the Scottish Government regarding the cost of responding to coronavirus.

A recent freedom of information request showed that up until the end of July there had been around £1.785 million in additional cost to the health board when it came to Covid-19.

This included reconfiguring some parts of the Gilbert Bain Hospital to cater for Covid-19 patients.

A report presented to board members showed that expenditure in the first three months of the financial year was offset by £500,000 in patient travel which did not occur.

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The impact of the Covid-19 pandemic also affected the operating activity income due to lockdown impacting on the number of non-Shetland residents receiving treatment as tourism ceased and also impacted on the laundry income generated from local hotels.

NHS Shetland chairman Gary Robinson opened the meeting by highlighting that a “tremendous amount of work” has gone into preparing for the winter months with regards to Covid-19.

He also thanked health staff as well as the Shetland community for the response to the initial outbreak.

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