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News Article

Scots savings plans outlined

Healthcare Finance July/August 2008

Date: 11 Jul 2008

NHS Scotland must deliver more than £200m in cash-releasing efficiency savings this year as part of the government's plans to save £534m across the Scottish public sector.


Under the plans, NHS boards will deliver £154.5m in 2008/09, £313.9m in 2009/10 and £478.4m in 2010/11.

Scotland's health directorate has also identified programmes to deliver savings in this financial year, including more than £60m from a cut in staff sickness absences and an ambitious target of £18m from more efficient procurement.

The programme to create shared services for finance and payroll across NHS Scotland will target a cash saving of £1.5m in 2008/09, rising to £2.6m in 2009/10 and £2.8m in 2010/11.

The savings only relate to the pilot phase of the scheme. Any further savings from extending the programme across NHS Scotland will not be known until the middle of the next financial year.

The savings will be released primarily from a cut in staff engaged in financial and payroll services in each board, though a common finance system will also generate savings.

No redundancy costs are envisaged as the staff reductions are expected through redeployment and vacancy management.

Health boards will focus on using a common finance system to streamline transaction processing. Currently, 20 boards have formed three consortia,
with NHS Greater Glasgow and NHS Lothian preferring to operate separately.

'Health boards are forming new alliances to deliver the changes on a co-ordinated national basis. The outcomes of the piloting process will be used to determine the final configuration of shared support services at national level,' the health directorate said.

The Scottish government's efficiency delivery plans for 2008
to 2011 expected £20m to be saved on the price of drugs prescribed and dispensed in primary care in each of the three financial years.

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