CAUTIOUS optimism has greeted the mid-year financial report to the Board – which indicates that NHS Dumfries and Galloway is on track to remain within its maximum permitted overspend of £28 million for 2025/26.
This is the upper limit the organisation is allowed, but it is now aiming to achieve a position closer to £25 million.
Delivering a report which recognised work across the organisation to strengthen financial controls and deliver savings, while also noting that significant challenges remain, Associate Director of Finance Ambreen Khan said: “The dedication of our teams so far is clear, but the real challenge lies ahead.
“By strengthening savings delivery and driving system redesign, we can transform our services and secure a sustainable future for the communities we serve.”
Board members were asked to note a year-to-date overspend of £14.3 million, which improves on the previous month – reflecting the mid-year review and cost pressures that are no longer expected to materialise.
It was noted that £7.2 million of planned savings are still to be delivered, which includes £1.8 million of recurring savings.
Meanwhile, key financial pressures are identified within acute services, external healthcare contracts, workforce gaps, higher-cost temporary staffing, and volatile prescribing costs – although some anticipated increases in medicines prices have not materialised
The Board remains at Stage 3 of the NHS Scotland Support and Intervention Framework, reflecting national concerns about long-term financial sustainability.
Scottish Government guidance confirms that £23 million of deficit funding will be available nationally for 2026/27, highlighting the need for early planning and prioritisation.
The organisation is engaging in the West of Scotland subnational planning approach, which is just beginning to take shape.
Early engagement will allow the Board to help guide the development of the emerging operational model so it meets local population needs, while embedding improvements in patient flow, prevention, and value-based care. These initiatives represent the organisation’s route to long-term financial sustainability, guiding how services are designed and resources allocated in the years ahead.
The Board is also being asked to approve further capital plan adjustments and commit funding to frailty services, supporting service stability while the wider system continues to adapt.
Chief Executive Julie White said: “Real progress has been made, but the work continues.
“We are grateful for the dedication of our staff who keep services running under significant pressure.
“By maintaining a firm grip on expenditure, delivering our savings plans, and embracing system redesign and regional collaboration, we remain committed to building a sustainable financial future that supports excellent care and meets the needs of our population.”