Sturgeon wraps up tens of millions in extra NHS funds

HEALTH Secretary Nicola Sturgeon has announced she is accepting a new funding formula which will give NHS Lothian a major cash boost.

An independent committee last year recommended changes in the way government funding is distributed between Scotland's 14 health boards to reflect more accurately the needs of different areas.

Ms Sturgeon said the new formula will be introduced from 2009/10.

Lothian emerges as the biggest winner from the change because the revised formula will place more weight on the area's growing population and less on unemployment.

Applied to 2007/08 figures, the new formula would have given NHS Lothian an extra £58 million – £989m compared to the actual funding of £931m.

Other health boards, like Greater Glasgow & Clyde, will see their share of funding fall.

Ms Sturgeon said the changes would be phased in over several years, and no board would have a cut in the cash it receives.

The new formula was recommended by the NHS Scotland Resource Allocation Committee (NRAC), appointed by the previous Scottish Executive to "improve and refine" the current Arbuthnot formula which has been in use since 2000.

The formula covers funding for hospital and community health services and GP prescribing, which is around 70 per cent of the NHS budget in Scotland.

The change will see Lothian's slice of the overall cake gradually increase from 13.7 per cent under the Arbuthnot formula to 14.4 per cent under the new calculations.

But the speed and details of the change are yet to be determined.

Ms Sturgeon said: "Having studied the proposals from NRAC in detail, I have decided to accept all their recommended changes to the Arbuthnot formula.

"I place high importance on the need to avoid turbulence in NHS board funding and can confirm that no board will receive less funding than it does at present and any changes will be phased in over a number of years.

"I am grateful for the valuable contribution NRAC has made in assessing resource allocation across Scotland. They have done this in a fair, objective and transparent manner, with the full engagement of stakeholders."

Dr Charles Winstanley, chairman of NHS Lothian, said: "We are delighted that the Cabinet Secretary has accepted the recommendations of the NRAC review.

"The Lothians are experiencing substantial population growth. The NRAC review recognises more accurately the demand placed on health services by demographic changes such as increased numbers of children and older people, as well as general population increases and we welcome this increased funding for healthcare in the Lothians."