NHS Borders could receive ten year funding freeze if new funding formula accepted by Scottish Government

6.15.53pm GMT Thu 7th Feb 2008

Health Secretary to consider representations after meeting Jeremy Purvis

A revised method of providing funds for NHS hospitals across Scotland may mean that the population of the Borders will grow by 8,000, taking ten years before it receives any additional support to pay for their health costs. Concerns over this issue were raised yesterday by Tweeddale, Ettrick and Lauderdale MSP, Jeremy Purvis, in a meeting with Health Secretary, Nicola Sturgeon.

The previous formula, known as the Arbruthrott Formula, provided additional funding for the Borders over and above its annual grant because of the extra costs of providing rural health services. However, the new approach from the NHS Resource Allocation Committee (NRAC) removes the rurality provision and instead puts in place a national excessive cost of supply classification. This has consequently placed the Borders very low down in the funding, and it will take ten years of population growth before the Borders meets national parity; this is the equivalent of losing up to £11 million of resources.

Commenting on the proposed funding freeze, Mr Purvis stated:

"I had a solid meeting with Nicola Sturgeon, and I was grateful to meet her and her officials to raise the very serious consequences that the Borders could have in providing additional health services for 8,000 people without any funding.

Mr Purvis then went on to state:

"If the NRAC is accepted, unaltered, it will be the most threatening financial situation that NHS Borders has faced since it was established. It will mean frontline cuts on rural provision and an unbearable burden on staff to provide care for 8,000 more patients without any additional funding.

"The Cabinet Secretary accepted the arguments and indicated that she will now consider my representations, and the evidence provided by NHS Borders.

"I have spoken with the Chief Executive of NHS Borders after my meeting and our need to continue making representations on this critical issue.

"I was glad that the Cabinet Secretary was receptive, and I hope that there will be changes to the formula before it is implemented."