NHS Dumfries and Galloway has achieved savings targets and significantly reduced spending on agency staff, as it continues work to improve its financial position.
A financial update presented to the Board today highlighted progress in managing ongoing financial pressures, with the organisation delivering its full recurring savings target of £12.8 million during 2025/26.
The report also showed a significant reduction in agency staffing expenditure, with spending falling by almost £3.5 million compared to the previous year.
Director of Finance Keith Dickinson said: “Delivering our recurring savings target and reducing agency expenditure are important achievements which reflect the hard work of teams across NHS Dumfries and Galloway to manage resources responsibly while continuing to support patient care.
“We recognise the significant financial challenges facing health services, both locally and nationally.
“However, these results demonstrate the progress that can be achieved through careful financial management and a shared focus on ensuring resources are directed where they can make the greatest difference for patients and communities.”
Board members heard that the year-end financial position was better than originally forecast. The Board recorded an overspend of £22.6 million, improving on the £28 million position projected when the financial plan was approved and remaining within the limits agreed with the Scottish Government.
The savings achieved during the year were delivered through a range of measures focused on improving efficiency, reducing avoidable costs and supporting more sustainable ways of delivering services.
While welcoming the progress made, Board members also recognised that very significant financial pressures remain across health and social care services, reflecting challenges being experienced by NHS organisations throughout Scotland.
The move into 2026/27 comes as the Board continues work to address a projected recurring deficit of £47.6 million – with some of the key cost pressures including medicines and prescribing, and external healthcare contracts.
Mr Dickinson said: “The scale of the financial challenge means there are pressures facing service delivery across the system.
“However, we remain committed to improving efficiency, transforming services, and working with partners to ensure safe, effective care for our communities.”
The Board will continue to monitor financial performance closely through its governance arrangements, including the Financial Recovery Board and the Performance and Resources Committee.
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