The report said changes in the Welsh NHS were essential

In July, a wide-ranging review of health and social care in Wales called for the service to modernise or face being overwhelmed.

On Wednesday, Health Minister Jane Hutt announced an extra �25m to fund changes, including a drive to give communities a greater say in local services.

Her plans include more schemes aimed at reducing the demand on health and social care by caring for people outside a hospital setting.

Ms Hutt also wants to cut the number of hospital re-admissions and reduce the number of beds blocked.

The use of modern technology - such as telemedicine, the diagnosis and treatment of certain medical conditions via a computer link - is also being encouraged.

The report, which was commissioned by the assembly government last October, was compiled by business analyst Derek Wanless.

It concluded that the situation in the Welsh NHS was worse than in the rest of the UK, with waiting lists unacceptably long.

REPORT'S FINDINGS Demand for health and social care services could overwhelm the system and workforce Health and social care organisations need to improve performance and modernise Citizens and communities need to take greater responsibility for their own health More emphasis put on prevention

It also called for people to take better care of their own health.

But the Welsh Conservatives said the plans were vague.

Jonathan Morgan, the party's health and social services spokesman, said: "Jane Hutt has given her usual response the problem - throwing more taxpayer's money at the health service.

"But we have seen a 40% increase in health spending since 1999, and a doubling of waiting lists as a reward.

"Spending money is not an achievement.

"Reducing waiting lists is an achievement, but she has failed to do this."

Plaid Cymru's Dai Lloyd said far too little money had been made available to make the improvements needed.

And Liberal Democrat Kirsty Williams said the Assembly Government was not facing up to the problems highlighted by Mr Wanless' report.

The �25m will be released to health boards and local authorities which can prove they are co-ordinating schemes to prevent avoidable admissions and accelerating departures from hospitals.

The report took evidence from the NHS, local government, patient groups, the voluntary sector, social care, professional bodies and academics.

Derek Wanless, the former chief executive of NatWest bank, was asked to compile the report after finishing a health review of the NHS for the UK government.

Jane Hutt has also announced a �10m programme to improve orthopaedic services in South East Wales.