Health bosses concerned as budget is £877,000 over the predicted deficit of £22.9million for this year

Members were told at a board meeting on Wednesday, July 24, that this sum is £2 million less than the budget deficit PTHB had originally agreed back in March.

The £2 million difference has been shoved on top of the savings and cuts the health board needs to make this year which has now gone up to £9.9 million when it had stood at £7.9 million.

This is on an annual budget of £421 million for the year.

And only three months into the new financial year PTHB are reporting that there are already issues, with finance chiefs saying they are £877,000 over target.

PTHB finance director Pete Hopgood said: “We currently have a deficit plan for £22.9million that is not recognised or accepted by the Welsh Government at the moment – but we continue to monitor our actions against this plan.”

He added that it was “very worrying” to be £877,000 off target.

Mr Hopgood said: “There will need to be remedial action to get us back on track.”

He explained that pressure points that had caused the increased expenditure included the need for more continuing care packages and the use of agency staff in mental health services.

The report explains that agency staff includes nurses and locum doctors.

Mr Hopgood drew the board’s attention to the job vacancy rates which are running at 20 per cent for mental health and 13 per cent for community services which leads to the use of agency staff.

He added that the new £9.9 million savings target was “very ambitious” for the health board.

Mr Hopgood said: “We continue to hold our forecast as per our plan, which is subject to further challenge by the Welsh Government.”

Deputy board chairwoman Kirsty Williams said: “At the moment you say we are holding fast, what is it that leads you to believe to recommend to the board that we don’t amend our plans and that the figures are achievable.”

Mr Hopgood explained that a number of “variables, risks and opportunities” that could help the health board had not yet “crystallised”.

This led him to believe that holding the position is still “within the parameters.”

Mr Hopgood said: “If the forecast moves the board will need to consider further decisions.”

Chief executive, Hayley Thomas said: “The focus has to be on how we recover to deliver the current plan recognising that we could face a scenario where be additional requirements could be set for the whole of NHS Wales”.

She added that once PTHB received feedback from Welsh Government, directors she would be in a better position to advise the board on any “additional actions” that need to be made.

Board chairman, Dr Carl Cooper said that the report highlighted the “very difficult and challenging issues.”

The board agreed the report.