The Council of Ministers (CoMin) will not endorse cost-saving proposals put forward by Manx Care and the Department of Health and Social Care (DHSC).
It’s due to the potential impact the measures will have on essential health services.
The proposals, which included the temporary closure of frontline services like hospital wards at Noble's Hospital and the Manx Emergency Doctor Service (MEDS), were aimed at mitigating Manx Care’s forecasted overspend.
However, the Council believe the measures are too detrimental to patient care to proceed.
Manx Care and the DHSC presented the proposals as part of a strategy to address financial challenges beyond previously identified savings.
However, the Council directed that any cost-saving efforts should not disrupt patient services, instructing Manx Care to focus on finding alternative savings that do not compromise frontline care.
Manx Care required the approval of CoMin for these measures, and will now have to go back to the drawing board.
It comes following the resignation of former Health and Social Care Minister Lawrie Hooper last month.
Chief Minister Alfred Cannan, who has temporarily taken over as Minister for Health and Social Care on an interim basis, highlighted the need for ‘robust financial control measures’ in last week’s House of Keys sitting, due to what he described as ‘significant financial pressures’.
‘The Minister chose to walk away, and we’re picking up the pieces’, Mr Cannan told the House, referring to Mr Hooper’s resignation.
He reiterated the urgency of implementing tighter financial controls and ensuring accountability, stating: ‘We cannot afford to keep paying out money that doesn’t exist’.
CoMin has confirmed that the Chief Minister has communicated the Council’s stance in a letter to Wendy Reid, Chair of Manx Care, urging the organisation to work closely with the DHSC to re-align the health budget with strategic objectives for the next financial year.
Mr Cannan highlighted the government’s commitment to sustaining vital health services within fiscal constraints.
He said: ‘No one wants to see frontline service provision diminished, but we also have a clear responsibility to deliver health and social care services within the allocated budget.
‘In committing now to support these vital services, Council have made clear that it is imperative every effort is made both to continue with immediate efficiencies where possible, but also to realign delivery to budget for the next financial year.
‘There will now be an intense period of engagement between the DHSC and Manx Care to improve governance and realign the mandate and service provision with the budget available for next year.’
Chief Executive for Manx Care, Teresa Cope, said: ‘I welcome this decision by Council, but also recognise the responsibility we have to deliver our services within budget.
‘It is difficult, and at times complex, to fully control all aspects of health and social care spending, but we welcome the opportunity presented to improve the framework under which we operate and most importantly the opportunity for better outcomes for our patients, service users and the Manx taxpayer.’