Manx Care 'holding a gun to the head of government' with cuts

MHK reacts to announcement about further reductions to health service

An MHK says Manx Care is 'holding a gun to the head of government' after announcing a series of cuts to its services.

The healthcare provider unveiled a raft of cut backs this week in a bid to reduce its projected overspend.

Previously, Manx Care Chief Executive Teresa Cope told Manx Radio the decision to cut the amount of elective surgery carried out isn't a political gesture.

Claire Christian is one of the members for Douglas South:

In response, a Manx Care Spokesperson said: "On 5 February 2024, at the request of the Minister for Health and Social Care, all members of Tynwald were fully briefed by the Manx Care Board on Manx Care’s financial position.

"The briefing included:  

• Details of the funding allocated to Manx Care compared with the funding formula recommended in the Independent Report of 2019 and the cumulative gap in funding that had arisen since 2021.  
• The financial impact of two consecutive years of inflation based pay awards of 6% per year (8.8m for 23/24)
• The financial impact of inflation on the cost of healthcare consumables, drugs and contracts with providers commissioned by Manx Care (11.7m for 23/24)
• The financial savings that had been achieved by Manx Care (7.5m for 23/24 and 17.7m since 2021)
• Lists of existing services which had been expanded and new services implemented by Manx Care in response to its Mandate from the DHSC since 2021. (these included the Introduction of the Frailty Service, Induction of the Sexual Assault Referral Centre (SARC) Investments in Safeguarding, Investments in Safe Staffing levels for front line services such as the Emergency Department and Oncology Services and expansion of the Diabetes Services.)

"In preparation for the financial year 24/25, the presentation explained to Tynwald that the additional Treasury funding of £43m covered the expected spend carrying over from 23/24, leaving just £9m available to cover £47m of identified funding pressures.  

"Of the 47m of funding pressure identified this included;

• £15m of costs of Inflation and Pay Award (based on 4% award to staff )
• £10m of additional costs identified as unavoidable (such as responding to legacy safety and compliance issues and Manx Care adopting the recurrent costs of previous schemes previously funded by transformation and responding to the recommendations of the external inspection by the Care Quality Commission and OFSTED). 
• £4.8m of costs were attributed to  Manx Care responding to its Mandate for 24/25.

"The same briefing was also provided to the Executive of the Isle of Man Medical Society on the 12th February 2024 as part of our key stakeholders understanding the financial context of the organisation.

"The could be absolutely no doubt that 24/25 would be another financially challenging year for Manx Care and hence Manx Care Board committing to make 19m of Cost Improvement savings in the year.  

"As previously reported the 12m of CIP schemes that are being delivered are largely all schemes which produce cost savings whilst improving outcomes for patient and services and greater efficiency and productivity to build a sustainable and efficient health and care service.

"The additional 5m of schemes agreed by the Manx Care Board in September do not compromise patient safety are considered to be the least impactful of schemes in response to our need to reduce our overspend in year.

"It remains important for us to collectively fully understand the true costs of health and care for the Islands population and what is affordable within the budget allocated."