Tynwald will be asked this month to approve an extra £20m of funding to cover Manx Care’s budget overspend and other potential costs.
Manx Care is forecasting an overspend this financial year of £15.8m
But it says there are a further £5.8m in risks to that forecast including a potential £2.25m of extra costs for off-island patient care, resulting on a possible total overspend of £21.15m.
However, the Department of Health and Social Care is forecasting an underspend of £1.35m, largely due to payroll savings from unfilled vacancies.
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Combining the DHSC's underspend with the worst-case scenario overspend in Manx Care results in a potential net overspend of £19.8m for the for 2024-25, an explanatory memorandum to Tynwald members states.
Treasury Minister Dr Alex Allinson said: ‘Manx Care are now forecasting a £15.8m overspend by the end on the financial year but there are some outstanding risks in terms of tertiary care costs and any significant rise in activity so they have also added an extra £5.35m to the total exposure.
‘The motion asks for up to £20m to cover all eventualities.’
Meanwhile, residents have been warned to expect fewer hospital beds, longer waits for non-urgent care, and higher charges for dental services and prescriptions in the coming year as a result of Manx Care’s new mandate for 2025-26 which outlines significant cost-saving measures.
The request for a supplementary vote will be made by Health Minister Claire Christian at this month’s sitting of Tynwald.
At the same sitting, members will discuss Manx Care’s new mandate and operating plan.
The arm’s length healthcare provider has been told it must stick within its £361.8m budget, with a 2% efficiency savings target imposed by the DHSC.
Manx Care has acknowledged that some services will change or be reduced.
Board chair Wendy Reid, said: ‘With the Mandate and the operating plan now aligned, our focus in the coming year will be on introducing those much-needed changes to our healthcare system that will improve outcomes for patients and the public.
‘We will provide clear communication and information to patients about these changes.’
Communication was anything but clear when Manx Care outlined a series of further cost-saving measures in January.
On January 9, the board approved a raft of measures which included reducing elective care both on and off-island.
These measures were due to be announced in mid-January to staff, clinicians and members of the public ahead of their implementation on February 1.
But then the DHSC effectively vetoed the plans - and the planned announcement was shelved.
Then at the 11th hour, Treasury gave the go-ahead for Manx Care to exceed its spending by around £800,000 so that it could reinstate routine outpatient activity on the island as well as some operations.