Warning over 'growing' NHS debts

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The NHS deficit in Wales is continuing to grow, the Welsh assembly's audit committee has warned.

Its report said that the debt, despite increased funding, called into question how well the service was managed.

The committee accepted 2005-6 was a "difficult year", with above inflation pay increases for non-medical staff.

The report confirmed that the NHS in Wales overspent by more than £30m last year. The service also has "historic debt" totalling £82m.

Half this figure needed to be paid back by 2009, increasing pressure on the organisation, auditor general Jeremy Colman said in April.

Wednesday's report said the NHS in Wales needed to address these challenges in a "sustainable" way, while delivering further improvements in patient waiting times by 2009.

The cross-party committee's inquiry also found there was a "great variation" in how different local NHS bodies were coping with the financial pressures.

By the middle of 2005/06, 11 local NHS bodies and Health Commission Wales (HCW) were predicting a deficit at the end of the financial year.

NHS trusts overspent by £25.9m and local health boards by £4.8m, said the committee, which is made up of 10 assembly members from all parties.

The performance of HCW was a "significant concern", the report added.

HCW is the agency of the assembly government which commissions specialist health services.

It broke even but only after receiving an extra £18m from the assembly government.

'Changing demands'

Committee chair Janet Davies AM said: "The committee accepts that 2005-06 was a difficult year, with above inflation pay increases for non-medical staff under 'Agenda for Change', escalating energy costs and demands to reduce waiting times.

"Some NHS bodies are coping with these pressure but others are not. Those that do cope must not be penalised.

Ms Davies said she was "greatly concerned" that historic debts had not been met by some NHS bodies.

"Achieving a sustainable financial position is not easy in the face of new and changing demands on the NHS, but some organisations are succeeding," she added.

"That the NHS in Wales receives much greater funding than it did during the first year of the National Assembly's existence raises a major question over management."