Hywel Dda University Health Board is facing an underlying financial deficit of £62.1 million, with the Welsh Government describing its deteriorating finances and performance as "unacceptable and unsupportable".

Documents presented to the health board's Finance and Performance Committee on Tuesday, 27 October reveal mounting financial pressures, with officials warning that the situation could worsen without significant improvements.

The £62.1 million figure represents the board's underlying recurrent deficit, reflecting the structural gap between its income and expenditure. It is considerably higher than the £40.8 million anticipated in its annual financial plan.

The board, which operates Bronglais Hospital in Aberystwyth and provides healthcare across Ceredigion, Carmarthenshire and Pembrokeshire, had originally forecast a £41 million deficit for 2026/27. That projection has since improved to £37.5 million, although the reduction is entirely attributable to a £3.5 million adjustment to the Welsh Risk Pool rather than improvements in operational spending.

Crucially, achieving the revised forecast depends on a further £20.2 million of financial measures, many of which have yet to be fully identified or confirmed.

The Welsh Government expects the board to limit its deficit to £22.1 million this year, meaning even the improved forecast remains £15.4 million above expectations.

The committee papers reveal that just £32.8 million of the £42.8 million savings target has been identified, leaving a £10 million shortfall. Of those identified savings, only £7.8 million is recurrent, raising concerns about the board's reliance on temporary financial measures.

Among the principal pressures are spending on agency staff and locum doctors, rising medication costs, continuing healthcare packages and outsourced clinical services.

Temporary staffing expenditure is running at an annualised rate of £61.4 million, substantially above the ministerial expectation of £44.5 million.

The health board has introduced tighter workforce controls and restrictions on recruitment to some administrative and management positions.

Replying to the Cambrian News, the Welsh Government confirmed that Hywel Dda remains subject to heightened intervention.

A spokesperson said: "Hywel Dda University Health Board is currently in level 4 escalation for finance, strategy and planning, and is subject to greater scrutiny.

"This includes regular accountability meetings challenging their progress and additional targeted support from both Welsh Government and NHS Wales Performance and Improvement."

The spokesperson added that NHS organisations must deliver services within their available financial and staffing resources.

"For the health board to de-escalate, their immediate priorities are to secure planned savings, tighten financial oversight, reduce risk, and stay on track to meet their budget for the year."

The committee papers also warn that the health board could require additional financial support from the Welsh Government by late February 2027 to maintain sufficient cash reserves.

A six-week financial recovery programme is underway, with measures targeting workforce expenditure, productivity, procurement and commissioned healthcare.

The board is expected to review its financial position on 26 November, before reporting any revised forecast to the Welsh Government in early December.

The news of Hywel Dda’s deficit comes after a challenging time in the spotlight for the board; bacterial outbreaks, wait time complaints, hospital transport woes, bed cuts and ministerial calls for excellence are amongst the other concurrent concerns.