Health board facing £8.3m deficit

Steps are being taken to minimise the deficit, the board says

Powys Local Health Board (LHB) has warned that it is facing a deficit of £8.3m, but said there was no threat to services in the short-term.

The LHB is blaming the cash crisis on the pressure of national waiting time targets and the cost of prescriptions.

Brecon and Radnorshire Liberal Democrat AM Kirsty Williams said she had spoken to the LHB and would write to Health Minister Edwina Hart about the problem.

The Welsh Assembly Government has been asked to comment.

The board's deficit has grown from £3.5m last year when controversial plans were announced to cut services at four hospitals, but there has been a moratorium on hospital closures since the assembly elections in May.

At the LHB's latest board meeting Margaret Pratt, the interim director of finance, said the organisation was living beyond its means.

All of the board are very concerned and disappointed about the deterioration in the financial position LHB chair Chris Mann

Members heard the deficit was expected to be £8.3m by the end of financial year next March.

Ms Pratt blamed the financial pressures of meeting national waiting time targets and the cost of prescriptions.

She added: "However, although problems are manifesting themselves through overspending on contracts outside Powys, we are concerned that one of the root causes of the financial problems is that Powys services are very expensive."

Board chairman Chris Mann said steps were being taken to minimise the deficit.

"All of the board are very concerned and disappointed about the deterioration in the financial position," he added.

Director of operations Dave Evans said while there was no threat to services in the short-term, the way services are delivered in the future could change.

AM Ms Williams said she would be writing to Ms Hart to ensure the assembly government did not put pressure on Powys LHB to make cuts.