SIGNIFICANT extra Welsh Government (WG) funding has been agreed for Hywel Dda University Health Board this week.
Described by some AM’s as a ‘bail out’, the extra funding has been granted in spite of former Minister for Health Mark Drakeford warning in January this year that WG would not provide additional funding to Hywel Dda or Betsi Cadwaladr in the event of the Health Boards overspending; the latter had projected an overspend of approximately £20m at that time.
Since making his comments in January as Minister for Health, following elections in May, Mark Drakeford was appointed Cabinet Secretary for Finance and Local Government.
Contrary to his original stance earlier this year, in a written statement released this week (Nov 2), Mr Drakeford stated: “I will allocate an additional £68.4 million revenue to the Health, Well-being and Sport portfolio. This funding will address the overspends being forecast by Betsi Cadwaladr and Hywel Dda University Health Boards in the current financial year.”
Steve Moore, Chief Executive for Hywel Dda University Health Board, said: “We welcome this additional funding to support the NHS in Wales.”
Mr Moore added: “For Hywel Dda, the extra funding will help our long-standing financial challenges in the delivery of healthcare arising from our rurality, and we appreciate this will place the organisation on a more sound financial footing.”
The additional funding was largely welcomed by members of the Welsh Assembly, and in particular by Mid and West Wales Labour AM Eluned Morgan, who commented: “I am glad that my Welsh Government colleagues have listened to our concerns about the structural financial problems in Hywel Dda and that there is an understanding of the issues raised by the Health Board and the Labour Party locally about a rural premium for health care delivery.”
She added: “Putting Hywel Dda on a better financial footing gives confidence to staff, management and patients and underlines Welsh Labour’s commitment to supporting, not cutting, funding to the NHS.
“Importantly, Hywel Dda Health Board is working really hard to get itself to a better, long term financial position. With the support of the Welsh Government, I expect many of the challenges the Health Board faces to be addressed.”
Angela Burns, Conservative AM for Carmarthen West and South Pembrokeshire, also showed her support; however, issued words of warning as to the need for meeting future budgets.
Angela Burns said: “I welcome the extra support that the Cabinet Secretary has provided to Hywel Dda University Health Board. The extra assistance is especially well received at a time when the Health Board is in targeted intervention stat.”
She added: “The money means that the Health Board are not having to cut services to pay back debt, but the Health Board must take this opportunity to use their current funding settlement to ensure that core services are not just maintained but delivered.
“Going forward, however, the Health Board must consider why they were not able to balance their budget and take the necessary actions over the next 12 months to ensure that this bail out is not required again.”
Simon Thomas, Plaid Cymru AM and Chair of the Finance Committee, drew on previous legislation which was designed to prevent overspending, saying: “Though I am pleased to see that patient care will not suffer because of overspending and lack of financial control at Hywel Dda University Health Board, surely the time is running out for these annual bailouts.”
Mr Thomas added: “The Assembly has legislated to allow health boards to plan over three year cycles with the aim of avoiding the need to bung extra money into the system late in the year. Indeed, the Health Minister promised it would not happen any more.
“Hywel Dda Health Board has to work hard to get itself on an even keen because after next year’s budget, we are expecting money to become even tighter.”
Hywel Dda University Health Board is responsible for providing health services throughout Pembrokeshire, Ceredigion and Carmarthenshire.
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