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Auditors warn NHS will finish the year £70m in the red | Auditors warn NHS will finish the year £70m in the red |
(about 3 hours later) | |
The NHS in Wales is likely be £70m in the red at the end of the financial year, a public spending watchdog has warned. | The NHS in Wales is likely be £70m in the red at the end of the financial year, a public spending watchdog has warned. |
The Wales Audit Office's (WAO) worst-case scenario predicts the overspend could even top £130m by April 2013. | The Wales Audit Office's (WAO) worst-case scenario predicts the overspend could even top £130m by April 2013. |
It comes days after the chief executive of the health service in Wales said he was confident that local health boards would balance their books. | It comes days after the chief executive of the health service in Wales said he was confident that local health boards would balance their books. |
But the WAO says most health boards "are unlikely to break-even". | But the WAO says most health boards "are unlikely to break-even". |
Shadow health minister Darren Millar said: "The NHS is on the brink of financial meltdown." | Shadow health minister Darren Millar said: "The NHS is on the brink of financial meltdown." |
He said it would be impossible for the NHS to find £130m without a big injection of cash from the Welsh government or cuts to services. | He said it would be impossible for the NHS to find £130m without a big injection of cash from the Welsh government or cuts to services. |
In a mid-year assessment, the WAO says the NHS is in a better financial position than at the same time last year, largely thanks to extra resources pumped in by the Welsh government. | In a mid-year assessment, the WAO says the NHS is in a better financial position than at the same time last year, largely thanks to extra resources pumped in by the Welsh government. |
Ministers hoped the money would end a cycle of additional funding being made available to deal with overspending by local health boards (LHBs). | Ministers hoped the money would end a cycle of additional funding being made available to deal with overspending by local health boards (LHBs). |
"It now seems unlikely that the cycle has been broken," Auditor General Huw Vaughan Thomas says in evidence to the assembly's public accounts committee. | "It now seems unlikely that the cycle has been broken," Auditor General Huw Vaughan Thomas says in evidence to the assembly's public accounts committee. |
Health bodies had a combined deficit of £69m at the end of September, compared to £110m in September 2011. | Health bodies had a combined deficit of £69m at the end of September, compared to £110m in September 2011. |
An analysis shows they predict an end-of-year deficit of around £70m "but that it could be significantly higher". | An analysis shows they predict an end-of-year deficit of around £70m "but that it could be significantly higher". |
Predictions range from a best-case scenario of £46m to a worst-case scenario of £131m. | Predictions range from a best-case scenario of £46m to a worst-case scenario of £131m. |
The WAO's warning - based entirely on data that the NHS itself has submitted to the Welsh government - is not the first of its type. | The WAO's warning - based entirely on data that the NHS itself has submitted to the Welsh government - is not the first of its type. |
In a report on the Welsh government's draft budget this month, the assembly's finance committee said it was not convinced LHBs could live within their budgets. | In a report on the Welsh government's draft budget this month, the assembly's finance committee said it was not convinced LHBs could live within their budgets. |
'Quality of care' | 'Quality of care' |
However on Sunday NHS Wales chief executive David Sissling told BBC Wales there was "increasing confidence" LHBs will hit their break-even targets "without in any sense compromising the quality of care". | However on Sunday NHS Wales chief executive David Sissling told BBC Wales there was "increasing confidence" LHBs will hit their break-even targets "without in any sense compromising the quality of care". |
In his own evidence to the public accounts committee, Mr Sissling says the NHS saved £285m last year "whilst driving up quality and patient experience". | In his own evidence to the public accounts committee, Mr Sissling says the NHS saved £285m last year "whilst driving up quality and patient experience". |
He adds that the service faces a "significant challenge" this year to find "efficiency savings" of £317m in order to break even. | He adds that the service faces a "significant challenge" this year to find "efficiency savings" of £317m in order to break even. |
LHBs have a legal duty to break even. | LHBs have a legal duty to break even. |
But Mr Sissling says that as part of a new financial regime, the Welsh government is looking at "whether changes to the NHS statutory financial regime are required to provide greater flexibility in the longer term". | But Mr Sissling says that as part of a new financial regime, the Welsh government is looking at "whether changes to the NHS statutory financial regime are required to provide greater flexibility in the longer term". |
The initial findings of a mid-year review of health pressures says the service has struggled to meet demand from patients who need to be seen immediately. | The initial findings of a mid-year review of health pressures says the service has struggled to meet demand from patients who need to be seen immediately. |
It adds that health boards have failed to reduce the high cost of agency staff, and says a big reduction is unlikely before proposed changes to services are introduced. | It adds that health boards have failed to reduce the high cost of agency staff, and says a big reduction is unlikely before proposed changes to services are introduced. |
The Welsh government said the WAO had confirmed the "urgent" need for service reconfiguration. | |
A spokesperson added: "NHS organisations are making significant progress on delivering savings. | |
"We will continue to work closely with all NHS organisations in monitoring and scrutinising the financial position on a continuous basis, with a view to ensuring that health boards will break even at the year end." |