{"id":176867,"date":"2025-10-03T06:34:11","date_gmt":"2025-10-03T06:34:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/176867\/"},"modified":"2025-10-03T06:34:11","modified_gmt":"2025-10-03T06:34:11","slug":"betsi-cadwaladr-told-to-break-even-or-lose-82m-support-deeside-com","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/176867\/","title":{"rendered":"Betsi Cadwaladr told to break even or lose \u00a382m support – Deeside.com"},"content":{"rendered":"


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An \u00a382 million improvement and transformation grant for Betsi Cadwaladr University Health Board could be at risk if the organisation fails to close its funding deficit.<\/p>\n

Less than halfway into the fiscal year BCUHB is reporting a \u00a313.6m financial deficit. It is also facing increased running costs for services including out-of-area mental health provision which are driving a further \u00a340m of risk.<\/p>\n

The board is also facing exposure to an uncapped level of financial risk from any legal action taken against it after it was revealed that the Welsh Risk Pool \u2013 which supports all health board with costs in the event of legal action \u2013 does not have enough funds to cover its current costs.<\/p>\n

This means health boards across Wales must pick up the tab for any tribunal costs or damages around matters like clinical negligence.<\/p>\n

Presenting the month five finance report to BCUHB\u2019s September board meeting Russell Caldicott, executive director of finance, said: \u201cThis is a very challenging climate across the whole of Wales. A lot of health boards are really struggling financially.<\/p>\n

\u201cFour health boards have put deficit plans in and are being helped as we speak to improve those positions. All health boards are reporting deficits year to date.<\/p>\n

\u201cWe\u2019ve got a \u00a313.6m deficit and we do have some additional potential pressures . The Welsh Risk Pool is\u00a0 a good example of where resources are unfortunately not sufficient to cover costs and health boards are being asked to accommodate those costs.<\/p>\n

\u201cThat is driving an increased risk to us as well as savings shortfalls and we\u2019ve got some running cost pressures as well \u2013 such as out-of-area mental health.<\/p>\n

\u201cThat\u2019s driving around a \u00a340m risk, not considering some mitigations, around delivery of outturn.<\/p>\n

\u201cWe\u2019ve already raised that with the governance of the health board and integrated performance executive delivery group.\u201d<\/p>\n

Despite the deficit, BCUHB continues to forecast breaking even. And it needs to, because failure to deliver on its financial plan will see the authority potentially lose an \u00a382m grant from Welsh Government for improvement and transformation.<\/p>\n

The non-recurring money has been paid this year but if the board fails to hit its financial goals, it may not be renewed for 2026\/27.<\/p>\n

\u201cWe\u2019ve moved quite progressively through the year,\u201d said Mr Caldicott. \u201cIn terms of in-year savings we have delivered \u00a333.2m towards our target of \u00a340m.<\/p>\n

Being just \u00a36.8m short at this point is good progress. Clearly the lessons are to get that in advance of commencement of the year not during the year.<\/p>\n

\u201cIn addition we\u2019ve targeted a 1% reduction in costs, that will give us a further \u00a320m saving.<\/p>\n

\u201cIt sounds like a lot of resource \u00a340m but that is in relation to a \u00a32.5 billion budget. \u201d<\/p>\n

BCUHB has overspent by on average \u00a32.35m each month since April. For the remainder of the financial year it needs to underspend by the same amount per month in order to achieve break even.<\/p>\n

\u201cIn that context managers have already been working to deliver a 1% efficiency across the organisation,\u201d added Russell.<\/p>\n

\u201cWe are still forecasting hitting our break-even. We have received correspondence from Welsh Government reaffirming the position that the \u00a382m grant is conditional in achieving our targets so there is a risk.<\/p>\n

\u201cWill they enact it? That is a good question but there is a risk to that resource being withdrawn from the organisation in 26\/27 if we\u2019re unable to close that gap.<\/p>\n

\u201cWe need to deliver savings as a byproduct of improving services to our population and create more resource to invest in the organisation.\u201d<\/p>\n

Reacting to the finance report Paolo Tardivel, BCUHB\u2019s Interim Director of Transformation and Strategic Planning, said that the board was incurring additional costs due to the challenges that had stacked up.<\/p>\n

By improving bottlenecks in healthcare provision, such as patient flow in and out of hospital, he said that unnecessary overspending would be significantly reduced.<\/p>\n

\u201cWe\u2019re treating the symptom and it\u2019s the cost of failure because the patient flow isn\u2019t working,\u201d he said.<\/p>\n

\u201cIf we improve the system we don\u2019t need people chasing progress and we won\u2019t need extra care on corridors because the whole thing\u2019s working.<\/p>\n

\u201cSo you get the nirvana of improving the service and saving money because you\u2019ve removed the waste.\u201d<\/p>\n

\u00a0<\/p>\n

By Alec Doyle \u2013 Local Democracy Reporter<\/p>\n

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