Manx Care has reported a £1.2 million deficit in the first two months of the financial year, with projections indicating it will need to use the entire £10 million contingency fund granted by Treasury.
The health body cited rising costs, unresolved pay awards, and delays in transformation funding as key pressures.
Finance Officer Tammy Hewitt stated: “We have an operational year-to-date position of a £1.2 million deficit. Taking into account additional costs against contingency funding, that takes us to a £2 million deficit.”
She noted risks including potential higher pay settlements and slower-than-expected delivery of £14.6 million in cost improvement programmes (CIPs).
The organisation has gone over budget every year since politicians voted to remove delivery of services away from the DHSC, which also ran over budget in successive years before the change.
Transformation
Chief Executive Teresa Cope stressed the urgency of accessing transformation funds to unlock savings.
She said: “We know there are some risks, but they are being monitored and mitigated. The biggest clarity will come at month three when we can reconcile our position more firmly.”
The organisation also faces unbudgeted costs from motorsport events like the TT races, which required additional medical services without dedicated funding.
Interim Director of Operations Sean Christian told the meeting: “We cannot stop delivering care because of financial pressures, but we must transform services to use resources better.”
The board will review updated financial projections in September. This follows Manx Care’s £15.3 million overspend in 2023/24 which will require a Tynwald vote next week.
Ahead of that vote, Minister Claire Christian said: “Although we’ve made some meaningful savings so far, we know there’s still more work ahead.
“Our priority is always to provide safe, high-quality care for patients and that means we need to continue finding ways to work more efficiently and make the best use of public funds.
“All healthcare systems around the world are grappling with rising costs and, even when we make savings, inflation can sometimes outpace them, which puts added pressure on our budget.
“However, the team remains firmly committed to managing those challenges carefully, always with the needs of patients at the heart of every decision we make.”
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