13 February 2009
By Paul Dicken
Financial management should be put at the centre of plans to restructure the NHS in Wales, according to Assembly members.
In a report published on February 4, the Welsh Assembly's audit committee said that reorganisation risked instability, which could undermine financial control. But it added that the restructuring also presented opportunities for improvement.
Conservative AM David Melding, the committee chair, said: 'The forthcoming reorganisation of the NHS provides a great opportunity to improve financial management by using existing capacity more effectively and ensuring the new organisations have the highest-calibre financial leadership.'
The Welsh Assembly Government is restructuring the NHS to create seven health bodies from the 22 local health boards, along with a national advisory board, delivery board and a 'unified public health' organisation.
The report – Are the devolved financial management arrangements in NHS Wales effective? – found that the improved financial position of NHS bodies at the end of 2007/08 was due in part to moving sums between organisations. 'The repayment by some bodies of these funds will place a notable pressure on their finances for 2008/09,' the committee said.
However, the report cited 'significant scope' to improve the input of financial management on performance improvement and the modernisation of services.
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