Rising population will cost Lothian health board £60m

Edinburgh and the surrounding areas are among a handful of places in Scotland that have an increasing head count.

And in a submission to the Scottish Government, NHS Lothian has revealed that fact alone will cost tens of millions of pounds, at a time when budgets are tight.

It has strengthened the argument against Holyrood that the health board doesn't receive a sufficient slice of the budget, especially when compared to fellow large boards like Glasgow.

Lynne Hollis, associate director of finance for NHS Lothian, said there had been indications that the funding proportion would improve in future years, although timescales had yet to be agreed.

She said: "We have a rising population in Lothian, which has led to increased use of our services. Since 2001 Lothian's population has increased by almost 50,000, with an increase in net migration from around 400 in 2001/02 to over 6000 in 2008/09.

"Building on the 20m efficiency savings we made in the last financial year, NHS Lothian is already working towards making 31m of efficiency savings this year by introducing more cost-effective ways of working across the organisation.

"This money will be reinvested into our services and will, in part, help to fund the additional 60m for our services that we anticipate for this financial year."

The details emerged in NHS Lothian's evidence to the Scottish Government's health department on budget allocations. It is because of the deeper deprivation on the west coast that NHS Lothian receives less cash under the NHS Scotland Resource Allocation Committee (NRAC).

The formula does not take into account Lothians' swelling numbers, and instead focuses on poverty levels, much to the fury of local health bosses and politicians.

One health board source told the Evening News: "There is a great feeling of injustice about this. Right from the top, the mood is we are not getting a fair slice of the cake, and haven't done for some years."

Of the total cost of the rising population, 22m will go on acute services at the Lothians' three main hospitals, with a similar figure on clinics and other health facilities. The pressure on "corporate and strategic services" will reach 13m, with other "revenue consequences" totalling 5m.