News / Wales takes steps to close funding gap

The NHS in Wales could face a funding gap of between £1.3bn and £1.9bn by 2014/15 if steps are not taken to change the way in which care is delivered, according to a five-year strategic plan.

The five-year service, workforce and financial strategy was commissioned by NHS Wales chief executive Paul Williams.

A strategy document said NHS Wales had an opportunity to deliver a high-performing, integrated system that would improve financial sustainability and patient care. But the immediate financial gap must be closed by delivering financial balance in 2010/11.

In the current financial year, the cost improvement programme is expected to save £350m to £400m. Between 2011/12 to 2015/16 there will be a focus on service transformation by implementing integrated care models and transformational cost improvement plans, generating a further £350m to £400m year on year.

The NHS had identified 14 high-value improvement opportunities, including shifting diagnostics to patients’ homes and diverting some A&E visits to more appropriate settings. This could yield cumulative savings of between £0.7bn and £1.2bn by 2014/15.

But the framework document warned that savings at the upper end of this projection would be required to ensure the NHS is on a firm financial footing.

Mr Williams said he did not want an inflexible plan, based on an implausible idea that demand and resources over the next five years could be forecast and controlled.

‘What I did want, and we now have, is a framework for integration and transformation,’ he said. ‘We know what the task is: better health for all and services as good as any in the world. We have new structures that promote integrated thinking and working across NHS Wales and close collaboration with our partners. The framework will set out how we will achieve this.’

Welsh NHS Confederation policy and communications manager Jonathan Davies said NHS Wales must deliver higher quality services at lower cost. ‘There are some very tough choices ahead, but it is clear the status quo is no longer an option,’ he said.