12.07.12
Funding cuts hamper NHS reform in Wales – WAO
The NHS in Wales is facing a funding catch-22 according to the Wales Audit Office.
Current services are unaffordable but the NHS may no have enough funds to pay for major reforms either, the WAO reported.
The NHS needs to save between £870m and £1bn between 2010-11 and 2014-15 and is currently reviewing how hospital services are configured.
The health service inWaleshas seen its budget rise every year since devolution, but now faces capital funding being cut 36% in real terms, the report shows.
Auditor general Huw Vaughan Thomas said: “In short, even after the very significant savings already made, the status quo is simply unaffordable and there have to be service changes to secure its long term future.”
The report says: “The challenge is that there is a catch-22: the status quo is unaffordable but the process of delivering the reform itself carries a cost that may be difficult to fund. There is, therefore, a major challenge for the NHS and Welsh government to identify the costs of reform and the options to fund it.”
Health minister Lesley Griffiths responded: “I am very pleased the auditor general recognises our approach to NHS finance, introducing a more flexible system which removes the dependency on end-year bailouts, is sensible and sustainable.”
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