Aneurin Bevan University Health Board’s (ABHB) deficit is forecast to hit £112 million with the authority’s current costs running above this.

The health board has been placed under enhanced monitoring by the Welsh Government in a report issued on Wednesday.

In the reporter the Welsh Government outlined 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."

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

In a statement ABHB said their financial position means that they ‘will need to take very difficult decisions to control and cut costs in the months ahead.’

A spokesman for Aneurin Bevan University Health Board said: “Like every other Health Board in Wales, we are facing the biggest financial challenge we have ever experienced and are doing everything we can to make efficiency savings without compromising the safety of our patients and communities.

“We currently have a forecast financial deficit of £112m for 2023/24 with current costs running above that level. This has been driven primarily by rising costs over the last few years through the Covid-19 pandemic, increased demand for NHS services, rising market prices, high variable pay costs due to workforce challenges and the extra resources we are using to catch up on waiting times following the disruption caused by the pandemic.

“Our financial position means that we will need to take very difficult decisions to control and cut costs in the months ahead. We are working through our plans and have identified further savings initiatives that will be progressed with pace.  

“We would like to reassure people that the very best interests of our patients, communities and NHS staff are being considered as we make difficult decisions to reduce Health Board spending.”

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.'

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.

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.