Money-strapped NHS board spends £1m on consultants… to assist them lower your expenses

A cash-strapped Scottish well being board is handing nearly £1m to a non-public agency of monetary ‘troubleshooters’ – to assist lower your expenses.

NHS Ayrshire & Arran was lately revealed to be overspending its finances by greater than £5 million per thirty days.

Nonetheless, the Scottish Mail on Sunday can reveal the board has chosen to deal with its monetary issues by handing £966,000 to an exterior consultancy agency.

An organization referred to as Viridian Associates is being paid the sum to advise on lowering workers numbers and slicing prices by offering ‘Interim Help and Monetary and Workforce Effectivity Supply Programmes’.

The appointment comes regardless of the well being board already having a well-paid management group – together with a chief govt incomes £130,000 a 12 months and a finance director who receives a fundamental wage of £115,000.

Though the agency has been recruited by the well being board, the associated fee is being met by the Scottish Authorities – which additionally employs lots of of civils servants inside its Well being and Finance departments.

Critics have mentioned it’s ‘ridiculous’ to try to lower your expenses by spending a lot on exterior consultants.

Scottish Conservative shadow well being secretary Dr Sandesh Gulhane mentioned: ‘Struggling sufferers and devoted workers in NHS Ayrshire and Arran will likely be asking severe questions on this close to £1 million spend on exterior troubleshooters. ‘They’re experiencing first-hand the affect of the SNP’s mismanagement of frontline providers throughout the realm.

‘That’s leading to longer A&E ready instances, operations being routinely cancelled and sufferers discovering it more and more arduous to entry GP appointments. Given the well being board have already got a well-paid board at their disposal, the SNP should come clear in regards to the justification for this contract.’

Elliot Keck, head of campaigns on the TaxPayers’ Alliance, mentioned: ‘The monetary stability of the NHS is a large concern for taxpayers throughout the nation. Cracking down on waste and getting their spending beneath management is completely important – however it’s ridiculous to be spending enormous sums on exterior consultants simply to work out what to do.

‘NHS bosses should guarantee each penny of taxpayers’ cash is spent effectively, delivering the frontline care folks rely upon.’

Awarding the consultancy contract, which is price £966,750, to Viridian, NHS Ayrshire mentioned: ‘NHS Boards have interaction with a variety of exterior consultancy kind companies to assist in numerous areas, primarily based on experience, availability and worth for cash. Following discussions between NHS Ayrshire and Arran senior management group and Scottish Authorities, NHS Ayrshire and Arran have awarded Viridian Associates the contract to supply Interim Help and Monetary and Workforce Effectivity Supply Programmes to supply an up to date Monetary Enchancment Plan to satisfy Scottish Authorities 2024/25 targets.’

Viridian, primarily based in Worcester in England, has beforehand been employed to assist NHS Orkney make financial savings.

In line with the agency’s web site, it’s a ‘healthcare finance and workforce enchancment consultancy with over 80 years collective expertise supporting NHS organisations remodel the way in which by which they ship providers.’

Final month an replace on NHS Ayrshire & Arran’s funds revealed the board had overspent by £16.6m between April and June – greater than £5m a month – with the prices pushed by higher-than-expected pay rises, the usage of unfunded beds as a consequence of delayed discharges and the rising price of medicines.

And not using a discount in prices and spending, the board would face a shortfall of £66.4m by the tip of the monetary 12 months.

Nonetheless director of finance, Derek Lindsay, mentioned he hoped to deliver the projected deficit all the way down to £53.5m.

The place well being boards battle to stability the books, the Scottish Authorities has beforehand been ready to supply ‘brokerage’ loans which have allowed them to interrupt even.

Nonetheless the federal government – itself dealing with dire monetary pressures – has this 12 months capped any potential lifeline mortgage for Ayrshire & Arran at £27.7m.

The board was warned that if funds deteriorated any additional the NHS Scotland could possibly be compelled to step in to kind out the finances – with final resort could be direct intervention by authorities ministers.

A spokesperson mentioned: ‘NHS Scotland makes very restricted use of the impartial sector, nevertheless there are cases the place it’s applicable to usher in extra assist, experience and capability for brief intervals of time.

‘NHS Ayrshire and Arran are on Stage 3 of the NHS Scotland Help & Intervention Framework for monetary administration and have entry to tailor-made assist which the Board are utilizing to have interaction Viridian Associates.

‘This compliments the present Govt Workforce to deliver extra experience and information to speed up enchancment and this assist will likely be in place for as quick a time as attainable. The long run sustainability of the Board is the accountability of the Govt Workforce working carefully with Scottish Authorities.’

NHS Ayshire & Arran chief govt Claire Burden mentioned the £1m contract was ‘an necessary enabler in our sustainable restoration.’

She mentioned: ‘Since Could 2024, the Scottish Authorities has funded the assist of an impartial firm, Viridian Associates, to work with NHS Ayrshire & Arran to safe a sustainable monetary plan for the advantage of the residents of Ayrshire and Arran.

‘Following a ten-week analytical overview, Viridian have produced a variety of price discount alternatives that can run alongside our present work to assist us ship our present Price Releasing Effectivity Financial savings (CRES) programme.

‘The extra useful resource and experience is to assist the Board in its dedication to ship an in-year price discount of greater than £20 million.

‘Viridian Associates may also present analytics and forecasts to safe an extra £26 million price discount as is required to shut our present forecast deficit.

‘As a Board now we have a major interval of restoration forward and the path to a sustainable NHS Ayrshire & Arran will take time. This extra assist is a crucial enabler in our sustainable restoration.’