NHS Borders has reported that services will be impacted by cost saving efforts as it attempts to save £28 million before 2025.
Following NHS Borders' public board meeting on Thursday, February 1, it was revealed that the health board currently has a deficit of £30 million, which is at risk of ballooning to £45 million by 2025 if no action is taken.
NHS Borders chief executive Ralph Roberts laid out the "significant financial challenge" facing the health and warned that "significant and radical decisions" will need to be made.
Mr Roberts said: “It is important to be honest that with the level of savings required (more than of 10 per cent of our total budget), this will have an impact on the services we provide and we will need to make some significant and radical decisions.
“Although we will do everything we can to mitigate the impact, we recognise that our services will feel different for our staff, patients and communities.
“We cannot speculate on any detail at this stage and are currently working closely with our teams to come up with options to present to the Board, after which we will set out the choices that we face and engage with our staff and communities."
Over the next eight weeks officials with the health board will work to agree on an updated financial plan at their next board meeting in April.
Mr Roberts said: "It is expected that our opening financial position in April 2024 will be a deficit of £30 million.
"Without any cost savings being made this overspend will rise to around £45 million at the end of March 2025 because of inflation, responding to increased demand and the cost of investments needed to deliver new health technologies and services.
"This is clearly unsustainable."
In response to the funding gap, NHS Borders has agreed with the Scottish Government to reduce the deficit to £17 million by March 2025 - equating a saving of £28 million this financial year.
Mr Roberts added: “Although this situation is not unique to the Borders with most other health boards in Scotland facing a similar position, we have a responsibility to deliver a balanced financial budget so it is vitally important that we inform the public about the scale of the challenge that we face."
Mr Roberts added that the effects of the coronavirus pandemic were still being felt by NHS Borders, with the board finding it difficult to return to previous levels of activity and performance.
NHS Borders will now use the information it collected from it 'Time for Change' conversations held between October and December last year to inform the decisions it will make as part of its cost saving efforts.
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