THE deficit at the Health Department could grow to £30 million by the end of 2024 unless massive savings are made, the Health Advisory Board heard on Thursday.
Health Chief Officer Chris Bown told the board that difficult decisions would need to be made that would “inevitably” impact services. A working group has been set up to urgently find £5.3m in savings before the end of the year.
In August, the department already had an £18.9 million deficit and it is now projected to hit £29.5 million by the end of the year if nothing is done.
Mr Bown said: “Saving money is easy as long as you don’t care about the consequences. But of course, we care about the consequences.”
It had set up a group called Cobra in July, tasking it with finding an additional £5.3 million in savings before the end of the year, head of finance Mark Quérée explained.
These savings are on top of the savings the Health department was already due to make through its Financial Recovery Plan.
The FRP was launched almost a year ago with plans to save £25 million by 2026, mainly through efficiencies, for example by better using theatres, by negotiating better contracts, and making more income through private patients. To date, the savings made through the FRP are ahead of schedule – but rising costs across other areas still place Health in the red.
Non-executive director Carolyn Downs said the department’s struggle to hit its financial targets was mainly down to a category of expenses called “non-pay”, which includes buying drugs, prostheses, equipment, continence products and more.
£15 million of non-pay overspends include £3.5 million in oncology and medical day care drugs, £2.9 million for social care and home care, and £1.5 million in referrals to the UK.
The department missed out on £1.3 million in income through surgery, catering, and other expenses.
Other overspends came through the hospital’s partnership with Southampton, and the rising cost of mental health care and care homes.
“As Chris says, there is going to be some difficult decisions,” Ms Downs said, adding that other health services faced similar issues. “It’s not just challenging in Jersey, it’s challenging in the UK as well. All three hospitals I am involved with in the UK are all overspending.”
