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Ministers refuse to bail out Welsh NHS health boards | Ministers refuse to bail out Welsh NHS health boards |
(about 2 hours later) | |
Four health boards which are due to see their overall budget deficits triple in size will not be bailed out, the Welsh Government has said. | Four health boards which are due to see their overall budget deficits triple in size will not be bailed out, the Welsh Government has said. |
The boards are forecast to over spend by £146m this year. | |
In one case - Abertawe Bro Morgannwg University Health Board (ABMU) - the financial outlook is said to be "extremely challenging". | In one case - Abertawe Bro Morgannwg University Health Board (ABMU) - the financial outlook is said to be "extremely challenging". |
The health board, which covers Swansea and Bridgend, said it was attempting to cut agency staff costs. | The health board, which covers Swansea and Bridgend, said it was attempting to cut agency staff costs. |
As well as ABMU there are overspends at Betsi Cadwaladr in north Wales, Cardiff and Vale board and Hywel Dda in mid and west Wales. | As well as ABMU there are overspends at Betsi Cadwaladr in north Wales, Cardiff and Vale board and Hywel Dda in mid and west Wales. |
Betsi Cadwaladr's deficit is now forecast to be £30m, Hywel Dda £49.9m, ABMU £35m and Cardiff and Vale £31m for the 2016-17 financial year. | |
The health boards will not face a bill to repay the money, but they will be expected to balance their books in the next financial year. | The health boards will not face a bill to repay the money, but they will be expected to balance their books in the next financial year. |
In the previous year, Betsi Cadwaladr and Hywel Dda had a combined deficit of £50m while Cardiff and Vale and ABMU both broke even. | In the previous year, Betsi Cadwaladr and Hywel Dda had a combined deficit of £50m while Cardiff and Vale and ABMU both broke even. |
Betsi Cadwaladr has been under direct control of the Welsh Government since June 2015. | Betsi Cadwaladr has been under direct control of the Welsh Government since June 2015. |
The other three boards were placed under an increased level of scrutiny from ministers last September due to doubts about their ability to tackle the financial challenges they face. | The other three boards were placed under an increased level of scrutiny from ministers last September due to doubts about their ability to tackle the financial challenges they face. |
Health Secretary Vaughan Gething told BBC Radio's Good Morning Wales programme he was "pretty certain" services would not be cut "simply because of money". | Health Secretary Vaughan Gething told BBC Radio's Good Morning Wales programme he was "pretty certain" services would not be cut "simply because of money". |
"We'll change services but that's because we should change some of our services, because they currently don't deliver the right value and the best quality," he added. | "We'll change services but that's because we should change some of our services, because they currently don't deliver the right value and the best quality," he added. |
'Unacceptable' | 'Unacceptable' |
He said the health service had a responsibility to provide "high-quality care" and at the same time "to do more to live within its means". | He said the health service had a responsibility to provide "high-quality care" and at the same time "to do more to live within its means". |
A Welsh Government spokeswoman said: "The position in these four health boards is unacceptable, and we have made it clear that we expect them to take action to significantly improve their financial position." | A Welsh Government spokeswoman said: "The position in these four health boards is unacceptable, and we have made it clear that we expect them to take action to significantly improve their financial position." |
She said ministers will not approve financial plans "that do not deliver such improvements". | She said ministers will not approve financial plans "that do not deliver such improvements". |
"Individual organisations that exceed their allocated resources, have not - and will not - be bailed out," she said, adding that the government is "working alongside all organisations to improve their respective positions" and that the "overall health budget will be balanced for the 2016-17 financial year". | "Individual organisations that exceed their allocated resources, have not - and will not - be bailed out," she said, adding that the government is "working alongside all organisations to improve their respective positions" and that the "overall health budget will be balanced for the 2016-17 financial year". |
ABMU has gone from a break-even position to a forecast deficit of £39m this year, and another forecast deficit of £53m next year. | ABMU has gone from a break-even position to a forecast deficit of £39m this year, and another forecast deficit of £53m next year. |
The health board has average running costs of £3m a day, so a £39m deficit is equivalent to the cost of running the board for 13 days. | The health board has average running costs of £3m a day, so a £39m deficit is equivalent to the cost of running the board for 13 days. |
It said it was focusing on an intensive recruitment drive to cut down on the cost of agency staff, as well as reducing waste in prescription medication. | It said it was focusing on an intensive recruitment drive to cut down on the cost of agency staff, as well as reducing waste in prescription medication. |
A spokeswoman said: "There are many challenges facing us when trying to identify savings that won't compromise patient safety and quality of care, at the same time as demand on our services increases." | A spokeswoman said: "There are many challenges facing us when trying to identify savings that won't compromise patient safety and quality of care, at the same time as demand on our services increases." |
A spokesman for the Betsi Cadwaladr University Health Board said: "We have worked hard throughout the year, and worked closely with Welsh Government, to address our challenges, and we will continue to do so going forward." | A spokesman for the Betsi Cadwaladr University Health Board said: "We have worked hard throughout the year, and worked closely with Welsh Government, to address our challenges, and we will continue to do so going forward." |
Stephen Foster, of Hywel Dda University Health Board, said: "This is not the financial situation that we would want to find ourselves in and we are putting together significant plans to turn it around." | Stephen Foster, of Hywel Dda University Health Board, said: "This is not the financial situation that we would want to find ourselves in and we are putting together significant plans to turn it around." |
Analysis by BBC Wales political editor Nick Servini | Analysis by BBC Wales political editor Nick Servini |
These figures show a dramatic deterioration in the finances of four out of Wales' seven health boards. | These figures show a dramatic deterioration in the finances of four out of Wales' seven health boards. |
They have also prompted a hard-hitting response from the Welsh Government which, until this point, has been keen to stress how they approach problems together. | They have also prompted a hard-hitting response from the Welsh Government which, until this point, has been keen to stress how they approach problems together. |
The tone resembles the approach of the man in charge of the English NHS, Jeremy Hunt, who has not been afraid of calling out heath trusts he believes are under-performing. | The tone resembles the approach of the man in charge of the English NHS, Jeremy Hunt, who has not been afraid of calling out heath trusts he believes are under-performing. |
The Welsh Government has called for a significant improvement in the financial performance. | The Welsh Government has called for a significant improvement in the financial performance. |
That will be easier said than done in the face of intense pressure on these organisations. | That will be easier said than done in the face of intense pressure on these organisations. |