News

Spending of NHS bosses probed

TWO of Northern Ireland's newest and most powerful health administrators have joined forces to probe how NHS bosses are spending their budgets.

The Irish News has learned that a letter was sent by Valerie Watts, right, chief executive of the Health and Social Care Board (HSCB), and Richard Pengelly, permanent secretary at the Department of Health - just more than a week after each had taken up their posts.

Sources say the joint communication to chief executives of the north's five health trusts is "highly unusual" - and is being viewed as a "warning shot".

Ms Watts, who comes from a public sector background, replaced John Compton in July while Mr Pengelly, pictured right, a former accountant, took over from Andrew McCormick around the same time.

Detailed questions about trust spending are outlined in the correspondence, sent out on July 11.

It is understood some senior financial administrators within the board were unaware the letter had been issued, causing "surprise" within management circles.

The development comes as the north's cash-strapped trusts come under increasing pressure to make cuts while operating strict "vacancy controls" when someone leaves their job.

The fallout from the government's quarterly budget allocation - known as the June monitoring round - has also heightened concerns after the department received only £20 million of the £160m requested.

The board refused to comment on the contents of the letter, instead stating they were "in discussions" with the department "regarding the financial position facing the health and social care system".

A HSCB spokeswoman confirmed they had asked the trusts to prepare contingency plans, "containing measures to deliver financial break-even" over the next financial year.

"The plans will include considerations of options to reduce expenditure and increase savings opportunities, while minimising the impact on front-line services, where possible.

Meanwhile, a spokeswoman for the Department of Health confirmed the Mr Pengally and Ms Watts had jointly contacted the health trusts regarding their spending for the next financial year.

"In order that they may gain a mutual understanding of the budget history and move forward on an informed basis, they asked the trusts to provide a range of financial information."

The department also referred to the contingency plans and warned that a review of all "uncommitted expenditure" is ongoing to determine which service investments "must now be delayed or stopped".

"Given the seriousness of this situation and the significant implications for health and social care, the health minister is not prepared to take final decisions until these proposals have been considered fully. The minister has ensured that the Executive is fully aware of the impact of the June Monitoring round on health and social care services in 2014/15 and he will continue to engage with the executive.

"It would be inappropriate to comment further at this stage."