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Health might have to cut some services next year to stay in budget, top officials have warned – with the department likely to hit a £28 million annual deficit by the end of 2024.
Change team finance lead Obi Hasan told the Health Advisory Board last week that the department is currently at a deficit of £24.7 million – and that by the end of the year, this figure would have gone up to £28 million.
It comes after additional savings delivered by a financial recovery plan – focused on efficiency – and a "Cobra" group were set up to identify possible savings.
Pictured: There had previously been concerns that the Health Department was getting close to a £30 million annual deficit.
The FRP initially set out £25 million of savings, spread over a period of two years and three months: £3 million in the last few months of 2023, £12 million in 2024, and £10 million in 2025.
But these targets were revised earlier this year and Health now aiming to save £5 million in 2024, £8 million in 2025, and £9 million in 2026.
By the end of the year, these savings are expected to add up to a total of £7 million – which, according to Mr Hasan, has mitigated some of the expenses and allowed the department to stay under a £28 million deficit.
There had previously been concerns that the department was getting dangerously close to a £30 million annual deficit.
But Health might still have to cut some services, according to non-executive director David Keen.
He told the board that 2025 "is going to be a difficult year" with "very difficult decisions".
Health Board Chair Carolyn Downs said she was glad that the department is preparing a "proper" Operating Plan, which is due to be in place in 2026.
"It is extremely important for the credibility of HCS and the Board as well that we live within our means," she said.
She asked Mr Hasan to put together reports for the three areas that pose the most risk to the department: social care and mental health packages, tertiary care contracts, and non-pay – which includes, for example, the cost of medicines.
Chief social worker Paul Rendell explained that placements both abroad and in Jersey were expensive.
The Chief Officer for Health, Tom Walker, warned that the department would have to handle its budget well.
"The Assembly has decided to support Health and Community Services in Jersey by giving more resources towards health and care as part of the Budget 2025, which has not been an easy process and has not been pain-free for the rest of the public service," he said.
There would be "challenges", particularly within non-pay, and the department would have to "really double down" on savings next year.
Pictured: Tom Walker was the Government’s Assistant CEO and Chief Officer for People, Policy and Digital before becoming interim Chief Officer for Health (pic supplied).
Mr Walker was appointed as interim Chief Officer for Health in September, taking over from Chris Bown.
The department's finances, he told the board, were his number-one priority.
With a special winter plan in place to deal with the annual increase in patients, the department should financially be able to deal with seasonal changes.
Mr Hasan admitted it was "not a happy picture" but said that if this winter is similar to last year's, the department would be able to cope.
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