MSPs warned over long-term funding of integrated health and social care

By The Press Association28th July 2017News ScotlandGovernment / Politics, Hospitals, Integrated Care, Local Authorities, News Scotland, NHS, Social Care

The integration of health and social care is underfunded and lacks a long-term financial strategy, a Holyrood committee has been told.

The budget shortfall means the required shift in the balance of care will take longer to achieve, according to the authorities set up to oversee the change.

The concerns were set out in a written submission to the Health Committee by the Chartered Institute of Public Finance and Accountancy’s integration group, which is comprised of Scottish integration authority chief finance officers (CFOs).

The integration authorities are responsible for joining up services provided by the NHS, councils and others to shift care from hospital to community settings.

They have responsibility for more than £8 billion of funding for local services which was previously managed separately by NHS boards and local authorities.

However, they said there is evidence the current budget is not enough to power integration in the long-term, with some authorities reporting shortfalls of up to 14%.

The submission states: “There is emerging evidence which indicates that the current level of resources is less than that required to meet current cost and demand pressures.

“In practical terms, this means that the required shift in the balance of care will take longer to achieve.

“A number of integration authorities have modelled the level of additional resources required to meet cost and demand pressures, with estimates between 3% (for 2018/19) and 14% (over two years) of existing budget.”

The group said the acceleration of cuts to hospital services would be needed, with financial officers recognising the squeeze on public finances means that “potentially resources will have to come from within the current financial envelope”.

“This will, however, accelerate disinvestment in acute hospital services accompanied by a consequent transfer to community-based services,” the submission adds.

Don Peebles, head of CIPFA Scotland, said: “The integration of health and social care services in Scotland will make a meaningful and lasting difference to the sector.

“Therefore, it is crucial that there is enough long-term investment to make sure services, which are facing significant pressures, can afford such transformation.

“It is illogical that there is no medium to long-term financial strategy for the integration of services in Scotland already in place. “We urge the Government to outline funding plans for future years to ensure outcomes can be boosted for the benefit of communities.”

Scottish Labour deputy leader Alex Rowley said: “This is a very serious warning that SNP ministers must take seriously. “We have a staffing crisis in our NHS and a funding crisis in local government. The SNP has cut £1.5 billion from local services since 2011, including £170 million this year alone.

“That has a major impact on services such as social care.”