Manx Care is forecasting yet another sizeable deficit by the end of the current financial year.

An executive directors’ report to this week’s board meeting has set out the financial position - which includes a year-end deficit of £19.2m.

But it adds: ‘Whilst financial pressures remain significant, there is increased confidence in the underlying financial position, the understanding of key cost drivers, and the effectiveness of the controls and recovery actions now in place.’

Manx Care has gone over-budget every year since it was created in 2021.

In June, Tynwald voted to approve £19m of funding to plug yet another deficit in the overspending health service.

The arm’s-length healthcare organisation saw its mandated budget allocation increase by £42m for 2026-27, from £361.8m to £404.1m.

But already by July it was forecasting a £8.1m deficit by the end of the financial year.

An executive summary said the principal drivers of the forecast £19.2m deficit continue to be ‘workforce-related expenditure, activity and demand pressures, inflationary impacts and the ongoing challenge of delivering financial recovery initiatives at pace whilst maintaining service quality and patient safety’.

It said that while challenges remain significant, management actions implemented throughout the first six months of the year have contributed to a stabilisation of the forecast position.

‘Enhanced financial controls, strengthened budget accountability arrangements and delivery of Financial Sustainability Programme initiatives continue to support improvement efforts,’ it added.

In board papers, Manx Care said a key priority remains on reducing underlying expenditure through enhanced recruitment governance, improved workforce productivity, and continued focus on reducing agency, locum and premium pay costs whilst maintaining safe and effective patient care.

It said: ‘Whilst the financial position remains challenging, the board can take assurance that robust governance arrangements are in place and that proactive actions are being taken to improve financial performance, strengthen organisational accountability and support the long-term sustainability of healthcare services.’