£105m health savings target
A HEALTH board has been tasked with making £105m in savings over the next three years.
At the latest meeting of Betsi Cadwaldr University Health Board (UHB), the Integrated Medium Term Plan (IMTP) 2022/25 was presented to board members for approval.
The document sets out the health board’s priorities and objectives for the next three years, including a financial plan, which must be approved by Welsh Government.
The associated report revealed that the health board has a budget of around £1.9bn each year for 2022/23, 2023/24, and 2024/25 – or £1,874m, £1,870m, and £1,907m for each respective year.
Board members discussed how £40m of Welsh Government funding had enabled Betsi to “break even” and balance the books for the past financial year.
But according to the plan, Betsi must find £35m savings a year for the next three years.
The report, though, doesn’t detail exactly how the savings will be made, although opportunities for savings are listed in the areas of planned care, unscheduled care, mental health, and other.
For each area a lower and higher amount of potential savings is given as follows: planned care £19.8m/£36.7m, unscheduled care £11.8m/ £18.7m, mental health £3.8m/ £5.5m, and “other” £35.3/ £53.3m. The lower-end savings total £70.7m. The higher-end savings total £114.2m.
The report also says “transactional savings” could make up £18m of savings in 2022/23, £12m in 2023/24, and £6m in 2024/25. “Transformational savings” could save £17m in 2022/23, £23m in 2023/24, and £29m in 2024/25, totalling at £105m.
Sue Hill, Betsi’s executive director of finance, said: “In terms of savings, obviously there has been a lot of scrutiny around this, and we are working closely with the transformational team to make sure we have robust benefit realisation around savings but also processes to make sure they are not impacting on the safety of services.”
Mark Polin, chairman of Betsi’s board, said: “We find ourselves in a far more advanced position than we have done previously.”
The plan was approved and will now go before Welsh Government.