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NHS Wales: Changes to help health boards 'balance books' NHS Wales: Changes to help health boards 'balance books'
(about 4 hours later)
Health boards could be given three years to balance budgets instead of one under Welsh government proposals.Health boards could be given three years to balance budgets instead of one under Welsh government proposals.
It says a new bill being introduced in the Senedd would give those running hospitals more flexibility and allow for "prudent long term decisions". It says a new bill introduced in the Senedd on Tuesday would give those running hospitals more flexibility and allow "prudent long term decisions".
Health boards have struggled to balance the books by the end of each financial year despite Welsh government cash injections. Health boards have struggled to balance the books by the end of each financial year despite extra government cash.
But Liberal Democrats said they feared ministers and health boards would "stack up a huge amount of debt".
If approved, the new system would come into force by the start of April.If approved, the new system would come into force by the start of April.
Since Wales' seven health boards were set up, they have found it difficult to manage their finances on a yearly basis, even with cash help from the Welsh government.Since Wales' seven health boards were set up, they have found it difficult to manage their finances on a yearly basis, even with cash help from the Welsh government.
Hospital consultants say the situation means accident and emergency departments are often at the point of meltdown during the last few months before the end of the financial year, partly because bosses are trying to meet targets.Hospital consultants say the situation means accident and emergency departments are often at the point of meltdown during the last few months before the end of the financial year, partly because bosses are trying to meet targets.
Now Health Minister Mark Drakeford has announced that he wants to give health boards three years, not one, in order to plan their finances. On Tuesday Health Minister Mark Drakeford told AMs the bill would give health boards three years, not one, to plan their finances.
'Long overdue' "It removes the significant challenge that local health boards face within the current annual financial regime, which encourages short-term decision making around the financial year end, preventing a more sustainable approach to service provision," he said.
The Welsh government said the change would mean last minute spending decisions at the end of the financial year would be avoided, something it admits can "stop activity on services and impact on the service delivery to NHS patients". But he stressed that the financial flexibility was "anything but open-ended".
It also said the bill would give health boards a more realistic timetable in terms of implementing bigger projects and would enable managers to come up with clearer, more coherent plans. "The bill will not allow local health boards (LHBs) to use the three year duty as a means simply to defer decisions on resourcing to the second or third year.
It added that there would be close monitoring of the health boards' finances under the new system to ensure that they don't overspend significantly in any one year. "Financial disciplines will apply to LHBs from year one as part of the Welsh government's commitment to ensuring that there is rigour in the practical application of this bill," he added.
Darren Millar, the Conservatives' shadow health minister, has in the past said the decision to move to a three year system is "long overdue and extremely welcome". 'Cancelled services'
Assembly members will debate the proposals in the Senedd on Tuesday. Ministers believe the National Health Service Finance Bill will give health boards a more realistic timetable for implementing bigger projects and would allow managers to come up with clearer, more coherent plans.
The Welsh government hopes the bill will then make its way through the various stages of approval by January and will come into force by the start of April next year. Mr Drakeford hopes the bill will make its way through the various stages of approval by January and come into force by the start of April next year.
But Liberal Democrat finance spokesman Peter Black said he feared both Labour ministers and health boards would be irresponsible and "stack up a huge amount of debt".
"Health boards will only receive allocations annually and any deficits will have to be funded on that basis," he said.
"As this is a rolling three year budget period this could mean that debts become unsustainable and services people rely on will be cancelled anyway because there will be no money left."