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July 26, 2005 12:00 PM

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"Overall NHS spending in Greater Glasgow continues to increase as planned. The Health Plan – while including cost efficiencies - continues to focus on developing services to patients and health improvement."

Tom Divers, Chief Executive of NHS Greater Glasgow, said: "The need to accelerate NHS modernisation and deliver single system efficiencies was in part driven by the need to fund the modernising pay agenda while making continuing investment in the Board's Local Health Plan.

Other key areas where efficiencies have been made include prescribing and centralised procurement.

Support services in particular have been at the forefront of many initiatives and this will continue throughout 2005/2006. Key changes toward single system economies of scale are being achieved in finance, laundry, equipment sterilisation, HR, laboratory services and communications.

Progress has already been made as a result of changes that have delivered the efficiency savings through re-organisation, restructuring and re-design of services.

The amount of savings to be found is not insignificant and remains an urgent priority – but in the context of NHS Greater Glasgow's £1.3billion funding package, it is less than 1% of budget and reflects the huge success already achieved in the Recovery Plan.

The challenge remaining for year two is estimated at £16.4m. Further savings of £6.4 million have already been identified, leaving a further £10m to be found.

The report also shows that NHS Greater Glasgow is now well into the second year of its two-year Financial Recovery Plan with significant progress clearly showing in the original £58m challenge.

The report, which was today (26 July 2005) considered by Board Members, shows that NHS Greater Glasgow has met the targets to stay within the annual allocated revenue resource limit, to stay within the allocated capital resource limit and to stay within the agreed cash requirement forecast.

NHS Greater Glasgow has successfully achieved the three key financial targets for 2004/5 set by the Scottish Executive - that's according to independent external auditors PricewaterhouseCoopers' annual report.

Audit report shows success for first year as single legal entity

For immediate release

26 July 2005

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Last Updated: 11 November 2021