HEALTH chiefs in Argyll and Bute have warned that they will not compromise on the price of services with a neighbouring board.

A report on the latest financial position at the Argyll and Bute health and social care partnership (HSCP)  has revealed that a dispute over a £1.2 million ‘service level agreement’ payment to NHS Greater Glasgow and Clyde remains unresolved.

And interim chief financial officer Kirsty Flanagan has said that unless there is an increase in activity, the HSCP will not pay more than that sum over the coming financial year.

The matter will be discussed at a meeting of the HSCP’s integration joint board (IJB) on Wednesday, May 29.

READ MORE: Health and care facing £5m overspend amid services row

Ms Flanagan said: “The most significant area of deterioration in the outturn position is in relation to charges from Greater Glasgow and Clyde.

“It was previously reported to the IJB that there was a risk that the outturn could increase by £1.2m due to a dispute over the value of the service level agreement (SLA).

“At the end of financial year 2018/19 the dispute remained unresolved.

“With intervention from the Scottish Government it was agreed that the brokerage given to NHS Highland would cover the disputed costs for 2018/19, and that there would be collaborative work with other IJBs who have an SLA with Greater Glasgow and Clyde on a new funding model for 2019/20 onwards.

“We have been clear that if activity levels for 2019/20 do not increase from the 2018/19 levels, then we will not pay more than our 2018/19 SLA offer, plus inflation. This remains a significant financial risk for the IJB.”

READ MORE: Board chair 'confident' despite health and care overspend

Ms Flanagan’s report also stated that NHS Greater Glasgow and Clyde levied further charges of £0.654m against the HSCP for services deemed to be exceptional charges outwith the main SLA.

However, Argyll and Bute councillor Kieron Green, who became chair of the IJB earlier this year, is optimistic about the new approach to the agreement.

He said: “I recognise how important it is for people in Argyll and Bute to be able to easily access health and social care services.

“Local and national plans call for a shift in the balance of care and associated funding from acute settings such as hospitals, to the community including provision in GP surgeries and in the home.

“By reinvesting resources in this way we will be able to better support people to live longer, healthier and more independent lives.”

READ MORE: Health chiefs ban 'non-essential' spending amid fears overspend could reach £5m

Council leader Aileen Morton, who is also a member of the IJB, added: “There is a need for a shift in the balance of care and associated funding from acute settings, such as hospitals, to community based settings.

“This isn’t an easy process but by reinvesting resources in this way we will be able to better support people to live longer, healthier and more independent lives within their own local area.”

NHS Greater Glasgow and Clyde has been contacted for comment.