Aneurin Bevan Health Board placed under ‘enhanced monitoring’

The health board is facing the ‘biggest financial challenge they have ever faced as an organisation.’

In a statement released today the Welsh Government outlines the new escalation levels of NHS trusts, special health authorities (SHAs) and health boards in Wales.

Health Minister Eluned Morgan has placed all seven Welsh health boards under higher levels of financial scrutiny together for the first time, pointing to "extreme financial challenges."

Ms Morgan warned "difficult choices" would need to be made to tackle the "massive" overspend.

Grange University Hospital (Image: Archive)

ABHB has been escalated from routine arrangements to enhanced monitoring for planning and finance.

Aneurin Bevan was initially planning for a £112.8m deficit but needs to find £51.5m to achieve this and £30m of that was judged to be a red 'stretch risk.'

A spokesman for the health board said they are ‘facing a financial deficit of more than £100 million this year, which represents the biggest financial challenge we have ever faced as an organisation.’

In comparison in 2019/2020 the health board achieved a 3-year rolling surplus of £513k.

In the Aneurin Bevan University Health Board Annual Report and Annual Accounts for 2022/23 the health board ended the financial year with an overspend of £37m. This was the first year the health board had not delivered a break-even position.

In the report it acknowledged that although the news was ‘disappointing’ at the six-month mark ‘the forecast deficit was much greater.’

Royal Gwent Hospital (Image: Newsquest)

This news comes days after staff working at hospitals and healthcare facilities across Gwent will no longer be entitled to subsidised meals - a cost-cutting measure from the health board which has been met with criticism from those affected.

At the beginning of August, NHS staff across Gwent were given notification that, "in light of the health board's significant financial challenges", the 30 per cent staff meal subsidy would be largely wound up.

However, Aneurin Bevan Health Board (ABHB)'s executive team said, after "reviewing all current costs" it was deemed necessary to "make some changes to the staff subsidy for hot meals".

This meant that from August 21 staff would have to pay the same as members of the public for all hot meals - with the exception of the meal of the day option, which is £2.

News of the removal of the staff food subsidy was not met warmly by those affected.

A radiology commenter wrote: "One minute you are giving us 50 per cent because you appreciate the cost of living and then you take it away completely.

"I bet the person(s) who made this decision is above a band 3 [on the pay scale]."

Responding to the wider condemnation of the move a spokesman for the health board said: “We are facing a financial deficit of more than £100 million this year, which represents the biggest financial challenge we have ever faced as an organisation.

“The financial deficit has been caused by rising costs over the last few years through the Covid-19 pandemic, increased demand for NHS services, and the extra resources we are using to catch up.

“Our financial position means that we are having to take very difficult decisions to cut costs and the recent decision to discontinue the hot food subsidy for staff is one of many measures we are taking."

ABHB, say they envisage the move will save them approximately £200,000 per year.

Deficit planned by each Welsh health board for 2023-2024 (Image: Newsquest)

Cardiff and Vale University Health Board is to remain in enhanced monitoring for planning and finance whilst Swansea Bay University Health Board to be escalated to enhanced monitoring for planning and finance and to remain in enhanced monitoring for quality and performance.

The Welsh NHS may have overspent by more than £800m by the spring of 2024, according to a BBC report released today.

Rising inflation, dealing with the Covid backlog, an ageing population and covering for staff shortages were cited as the main reasons for the worsening financial situation.