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NHS Scotland will continue to rise to the challenge of providing top quality healthcare while making best use of public money, Health Secretary Nicola Sturgeon said yesterday.

Responding to the latest Audit Scotland report into NHS Scotland's performance in 2008-9, Ms Sturgeon said that while the entire public sector faced financial challenges, NHS Scotland was managing its budget effectively and meeting key targets to improve healthcare for the people of Scotland.

The report states that out of a budget of £10.6 billion, NHS Scotland saw an underspend of just £4 million - less than 0.04 per cent. At the same time, NHS boards made efficiency savings of around £192 million to reinvest in frontline services, beating a target of £154 million.

Key healthcare achievements in 2008-9 included - for the first time - a target to treat 95 per cent of urgently-referred cancer patients within 62 days. And death rates from heart disease, stroke and cancer - the three biggest causes of premature death - have continued to decline.

Ms Sturgeon said:

"As Audit Scotland points out, NHS Scotland is operating within budget and beating its own targets for efficiency savings to reinvest in frontline services.

"At the same time, the health service achieved its best ever cancer waiting times, its best ever outpatients and daycase waiting times and the lowest rates of healthcare associated infections on record. This is testimony to the hard work of all our NHS staff and we can all celebrate these significant achievements.

"But we are not resting on our laurels. Not only will we continue to strive for further improvement in all of these key areas, but the Scottish Government is also putting great emphasis on tackling preventable disease linked to lifestyle choices, such as alcohol, tobacco, diet and exercise.

"We will continue to shift the balance of care away from acute hospitals where possible so that people can be cared for closer to home - which is better for patients and the public purse.

"There's no doubt that the entire public sector faces a challenging climate ahead, but the Scottish Government's draft budget for 2010-11 has protected health spending, which is set to rise to £11.347 billion.

"While we cannot predict the public spending environment beyond the next Spending Review, NHS Scotland is working hard now to become leaner and more efficient so that we are prepared to deal with whatever lies ahead."

The total amount of efficiency savings achieved by NHS Scotland as a whole - including NHS boards and the Scottish Government Health Directorates - was £297 million in 2008-9, including £203 million achieved by NHS boards.

This is higher than the £192 million figure for efficiency savings recorded by Audit Scotland, which only takes into account the savings which contribute to Efficient Government targets. A small minority of savings achieved by boards will not contribute to these targets, but will nonetheless be available to reinvest in frontline services.

NHS Scotland will launch its new Quality Strategy early in 2010, which will set out the health service's aim to be a world leader in patient-centred, safe and effective healthcare. Ensuring value for money in services will be a key focus.

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