Aberdeen's health and social care partnership faces £14 million budget cuts amid rising costs.
Topics covered
The Aberdeen City Health and Social Care Partnership is set to undergo substantial financial adjustments, aiming to save approximately £14 million over the next year. This decision comes in light of rising operational costs and the need to maintain essential services for the community.
The board, which operates under the joint funding of Aberdeen City Council and NHS Grampian, has voted to implement a series of changes that will impact various services.
Financial pressures and funding solutions
Recent weeks have seen a multi-million-pound rescue deal that has somewhat alleviated the financial strain on the partnership.
Aberdeen City Council has committed an additional £9.5 million to support the partnership, emphasizing the necessity of a significant council tax increase to safeguard the most vulnerable populations in the area. NHS Grampian has also allocated £6 million to cover operational costs, while an additional £10.9 million will be provided by partners to protect essential frontline services, including residential care beds and counseling services.
Cost-cutting measures and service adjustments
Despite these financial injections, the partnership still faces the daunting task of making substantial savings. The board has identified that it needs to cut £14.35 million to balance its budget. This figure includes pressures from pay inflation and increased national insurance contributions, with a notable £820,000 remaining unfunded. The partnership is also grappling with rising prescription costs, which are projected to increase by 5%, translating to an additional £2.5 million over the next year.
To manage these financial challenges, the partnership plans to implement efficiency savings across various sectors. This includes raising fees for day care services, meals, and housing support, with day care costs expected to rise from £9.25 to £20 per day. Additionally, the cost of community alarms will increase from £3.85 to £6 per week. These adjustments are aimed at generating approximately £381,000 in revenue to help offset the budget shortfall.
Impact on staffing and nursing costs
Staffing levels will also be scrutinized, with potential reductions in bank nursing expenditures amounting to £999,000. Bank nurses are typically employed to fill staffing gaps during periods of high demand or employee absences. Finance director Amy McDonald highlighted that the annual budget for nursing staff stands at £47 million, with an additional 10% spent on bank nursing costs. The partnership is actively exploring ways to reduce these expenses without compromising the quality of care provided to residents.
Furthermore, the partnership is reviewing care services for older adults and individuals with learning disabilities, aiming to save £3.3 million. Changes to the availability of day care services across the city could yield an additional £1.4 million in savings. The most significant savings are anticipated from cuts to non-essential services, which could save the partnership over £4.5 million.
Community assurance and future outlook
As these changes are set to take effect from April 1, partnership leader Fiona Mitchellhill reassured board members and the public that the priority remains to protect services for Aberdeen residents. She emphasized the importance of listening to staff who provide daily care, ensuring that decisions are informed by their insights. Councillor Lee Fairfull sought assurances that budget cuts would not adversely affect other departments, to which McDonald responded that maintaining financial balance across all areas is a priority.
As the Aberdeen City Health and Social Care Partnership navigates these challenging financial waters, the focus remains on delivering essential services while managing costs effectively. The upcoming adjustments reflect a commitment to sustainability in the face of rising operational pressures.
