Unison fear modernisation could mean hospital closures

Dr Gibbons told BBC Wales the NHS faced a difficult year, but said he would be surprised if the deficit was that high.

The health service union Unison is warning of hospital closures.

But the director of the managers' body the NHS Confederation agrees with Dr Gibbons that savings are possible without affecting frontline services.

The NHS Confederation which comprises the bodies which make up the health service in Wales are meeting on Thursday and Friday to discuss how to modernise.

'Significant progress'

The aim of the conference is to establish a "clear sense of direction and purpose" for the NHS up to 2015, and is set against the confederation's own warning that the overall deficit for the current financial year could reach �40m.

The total budget for the Welsh NHS is around �4.9bn.

Speaking on BBC Radio Wales, Dr Gibbons said: "It's always been acknowledged by the assembly government that this is going to be a difficult financial year in Wales.

"But I think it's our belief that the necessary savings and efficiencies can be achieved without any major effect on frontline services."

He said "significant progress" was being made to tackle the deficit in most communities.

"I would be surprised if it was anything like as high as �40m by the end of the year," he said.

Confederation director Mike Ponton said health organisations throughout Wales were working to make the �40m deficit lower by becoming more efficient and improving performance.

He said: "The deficits are a symptom of an unsustainable system - but the drive is to improve services not to cut them."

Dr Gibbons said he would be surprised if the deficit was �40m

Mr Ponton said part of the solution was to treat some people outside the hospital system - for example those with chronic illnesses, whom he said could be better cared for in the community.

"Our line is we have to work through this deficit by changing the way we deliver services and it means the public has to have a different view on how services are provided."

But Dave Galligan, head of health for Unison in Wales, told the BBC he was very concerned about the debt.

"If you're going to manage this sort of deficit quickly, then modernisation becomes a euphemism for a fairly significant hospital closure programme - and that's the real concern.

"Many staff feel there's almost a hidden agenda here that you get modernisation by closing facilities, by changing the use of facilities and it will be dressed up as necessary economies."