Health and social care chiefs in Perth and Kinross are racing to make savings to fend off an £8 overspend this year.
Costs may have to be trimmed in services such as prescribing and care at home, while non-essential posts go un-filled.
The Perth and Kinross Social Care Partnership has been told to come up with a financial recovery plan by the start of October.
Its chief finance officer Donna Mitchell told a meeting on Wednesday there had been “a substantial increase in unplanned expenditure” in the first three months of the financial year.
The partnership, which oversees services such as out of hours care and care home placements for older people, receives its funding from Perth and Kinross Council and NHS Tayside.
It was given approval to take just over £3m from reserves in order to balance the books for 2024/25.
That budget already required the partnership to find savings of more than £5m.
But figures for the first three months of the financial year show spending is way above what was budgeted for in March.
If it continues at this pace, the partnership will be heading for an overspend of £8 million, not £3m, for the year.
And plugging that gap would swallow up all of the remaining reserves.
Care home placements and out of hours services in focus
The situation was spelled out at a meeting of the Perth and Kinross integration joint board (IJB).
Members were told costs are rising in areas such as prescribing, out of hours services and care at home.
Care home placements for older people, senior medical cover and unfunded in-patient beds also fuelling the financial pressures.
In her report to the board Ms Mitchell said: “It is recognised that it is early in the financial year to provide accurate projections and they are highly likely to change.
“However, all attempts will be made to reduce the projected overspend and a financial recovery plan will be presented to the IJB on October 2.”
She revealed work is already underway to minimise costs.
This includes “vacancy control” on all non-essential posts.
Bosses are working with services to reduce expenditure on costs other than staff.
And budget recovery plans have been requested from services where overspends are projected.
The organisation says it will also work with partners to “identify opportunities for efficiency and minimise any detrimental consequences”.
Perth and Kinross Partnership challenges mirrored elsewhere
Talks will be held with finance bosses at NHS Tayside and Perth and Kinross Council.
But members were told the issues facing Perth and Kinross are also happening elsewhere as partnerships grapple with the rising costs and changing needs of an aging population.
That includes with its neighbours in Tayside and Fife.
The Perth and Kinross Health and Social Care Partnership is made up of representatives from the council, NHS and other community partners.
Its mission is to give people the support they need to live active, healthy and independent lives in their own homes for as long as possible, and to prevent unnecessary stays in hospital or in residential care.
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