NHS Forth Valley has instructed all departments to make further savings as the health board faces a £38 million shortfall in its annual budget.
The call for cost-cutting measures comes just three months into the financial year, with the board warning that urgent action is required to accelerate the pace of savings and reduce in-year expenditure.
According to the latest board papers, every directorate has now been asked to identify additional savings equivalent to 2% of their operational budgets.
This directive follows the approval of initial cost improvement plans and efficiency programmes, which were endorsed by the Scottish Government at the start of the financial year in March.
Despite these efforts, progress has fallen behind expectations. The director of finance at NHS Forth Valley reported that nearly all areas within the savings plan are currently off-track, with some departments experiencing significant overspends. Acute services alone have recorded a £7.5 million overspend as of June.
The health board has emphasised that it is not alone in reporting a funding gap this year. While the total projected deficit remains unchanged since March, concerns are mounting over the ability to meet previously set targets. The board has acknowledged that while substantial progress has been made—particularly in reducing reliance on temporary staff and cutting medication costs—further work is needed to stabilise the financial position.
At present, there are no plans to cut or scale back services. However, departments with the highest levels of overspending have been instructed to review operations and find new ways to lower costs and enhance efficiency in order to stay within budget.
NHS Forth Valley remains confident that the combined efforts across the organisation will help reduce the current overspend and strengthen its overall financial standing in the months ahead.
