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Gwent’s health board spends millions each month
From caring for the sick and injured, to keeping the lights on and paying its 13,000 staff, the NHS in Gwent spends millions of pounds every month.
Aneurin Bevan University Health Board (ABUHB)’s monthly wage bill runs into millions alone, with the organisation employing 13,141 whole time equivalent staff.
Why is Caerphilly in Gwent?
Caerphilly County Borough was formed on April 1, 1996, by the merger of the Rhymney Valley district of Mid Glamorgan with the Islwyn borough of Gwent.
Administratively, for local services such as the police and health, the borough now falls under a wider region referred to as Gwent. This comprises the council areas of Caerphilly, Newport, Torfaen, Blaenau Gwent and Monmouthshire.
The latest available figures show in September its substantive staffing bill, for those it directly employs, was £67m – and that was up slightly from August due to the impact of previously agreed pay increases.
But that’s not the whole amount the board spent on staff in just one month. A further £5.6m went on wages in September on the bill for variable pay that covers staff, drawn from a reserve bank with at least 56% of those being healthcare support workers, and agency staff including nurses and locum doctors.
Combined in September the board spent £72.6m on its workforce, though over the course of the year it has been taking steps to reduce the number of agency staff it requires.
Part of that has been recruiting more of its own directly employed staff, and keeping hold of them.
While the total number employed by the health board increased by 59 whole time equivalent posts since March (the end of the previous financial year) it also shed some staff, including 128 posts in admin and clerical due to a programme to reduce their numbers by 2% by the end of the financial year.
Among the reduction of 128 were 59 posts that transferred, with their terms and positions protected, to a newly established NHS Wales team.
Outside of pay, ABUHB spent £89.4m in September on its running costs, mostly the cost of care, and that was up £2.9m from August, while the price of drugs is one factor that can increase costs from month to month.
Keeping the lights on, and powering hospitals and a vast array of other buildings, is another expense – with the board having spent £17m on gas and electricity so far this year. That is actually £1.6m less than budgeted for, with the money put back into the reserve to support its overall position.
Over the financial year the board expects to finish with a deficit (the difference between what it has spent and the amount it received in funding) of £47.8m, which is actually £1m less than it had budgeted for.
But it still warns drug costs, a failure to reach its £40m savings target, and demands on services and pressures on its workforce could each, or all combined, knock it off course.
The planned deficit is also £35m more than the £13m “control deficit” figure set by the Welsh Government, which has placed all health boards under enhanced monitoring for finance.
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