Tynwald to Review Healthcare Overspend of £15 Million
Tynwald will be asked to approve a healthcare overspend of £15.3 million for the last financial year. The request follows a previously rejected bid for £20 million in March. This time, the Department of Health and Social Care (DHSC) is asking for a smaller amount after refining their figures.
The overspend has been attributed to rising employee costs, increased expenses for off-island care, and inflation. Health Minister Claire Christian said inflation continues to challenge even the best savings plans. “Added pressures like global inflation make it harder to keep healthcare budgets under control,” she explained.
Key Factors Behind the Healthcare Overspend
One key issue is the 3.9% tariff increase imposed by the UK’s NHS for off-island care. This sparked a full review of tertiary care costs. Medication costs also rose by 4% over the previous year due to inflation.
Increased spending was reported in critical treatment areas like cancer, renal, gastroenterology, rheumatology, and cystic fibrosis. The launch of new services, such as the emergency helicopter service and updates to the community pharmacy contract added £3.8 million to the bill. Additionally, £2.3 million covered staff pay rises agreed at 8%.
The healthcare overspend has exhausted the full £10 million contingency funding provided to the department.
Staffing Shortages and Ongoing Financial Risks
Manx Care, which oversees health services, now projects a £2 million deficit for the current year. Officials say ongoing pay negotiations and rising tertiary care costs add uncertainty to the budget. Finance officer Tammy Hewitt confirmed that they expect to need the full Treasury contingency again.
Interim executive director Shaun Stacey highlighted ongoing recruitment issues in the medical workforce. “We’re still struggling to fill many key roles,” he said. There’s also a push to improve urgent care services, which are taking longer and require more investment.
Board member Charlotte Orton said the team is working with UK universities to offer remote occupational therapy training for island residents. These learning opportunities may begin later this year or next.
Tynwald’s final decision on the healthcare overspend will come during the last parliamentary sitting before the summer break.
