Health overspend 'challenging' - chief minister

The chief minister has said it will be "very challenging" for Manx Care to come in on budget in April, despite moves to reduce a £16.8m forecasted overspend.

The health care body recently announced £5m of cuts, but further measures, including hospital ward closures, were not supported by the Council of Ministers.

Alfred Cannan also confirmed to the House of Keys there had been “no exploration of charging for clinical services” and there were no plans to privatise them.

Cannan is currently acting health minister following the resignation of Lawrie Hooper from the post last month in a row over future healthcare funding.

In his resignation speech during the October Tynwald sitting, Hooper said be believed the chief minister wanted to privatise the Manx NHS.

When questioned about funding in the House of Keys, Cannan told MHKs the government was "committed to providing health care that is free at the point of contact for residents".

He said those working on the island had always contributed through the taxation system to the cost of providing the healthcare they receive.

However, he told MHKs the Department of Health and Social Care minister and Manx politicians should have their "rights reserved" to determine "whether future charging is the right way to approach to matters given our budgetary challenges".

In April, the government introduced a 2% increase in the higher rate of income tax, which the treasury minister said would be ringfenced for health and social care spending.

In the 2024-25 budget Manx Care's funding rose by £43m to £346m.

During the sitting, Hooper asked the chief minister if Manx Care was "required to come in on budget this financial year" given that further savings measures were not backed by the council.

In response, Cannan said it would be a "very, very challenging target" but the body was being asked to "make every effort to find the efficiencies and savings to deliver on their cost improvement plans".

He told members, the situation needed to be "realigned... given the impact it's having on our long-term position when it comes to reserves and our financial sustainability into the future".

"We will continue to deliver frontline services to patients, while recognising the seriousness of the overspend," he added.

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