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Friday
09  October

MP calls for rethink of Powys healthcare amid £44.6m deficit

 
09/10/2026 @ 02:17

Montgomeryshire MP Steve Witherden has warned that plans to reduce hospital services in Powys could increase pressure on hospitals in England, despite an additional £3.4 million being announced to tackle cross-border treatment delays.

The Montgomeryshire and Glyndŵr MP has called for a major rethink of rural healthcare funding as Powys Teaching Health Board (PTHB) faces a projected £44.6 million deficit by the end of the financial year.

His intervention follows the announcement of an additional £3.4 million from the Welsh Government to help reduce waiting times for Powys patients receiving treatment at hospitals in Gobowen and Hereford.

However, Mr Witherden argues that the funding fails to address the wider financial pressures facing the health board and could do little to prevent further reductions in local services.

The intervention comes amid continuing controversy over proposals to reorganise community hospital services across Powys, including plans that would see Newtown become a central inpatient hub while beds are removed from hospitals in Welshpool and Llanidloes.

The proposals form part of the health board's efforts to address financial and operational pressures while changing how healthcare is delivered across the county.

PTHB has argued that changes are needed to make services sustainable, improve patient care and address staffing challenges. However, opponents have raised concerns about longer journeys for patients and families, reduced access to local treatment and the potential impact on other hospitals.

The latest funding announcement has brought renewed attention to the costs of providing healthcare in a largely rural county where many residents rely on hospitals outside Powys for specialist treatment.

Unlike most Welsh health boards, Powys does not operate a district general hospital and commissions a significant proportion of hospital treatment from neighbouring NHS organisations in Wales and England.

This includes services provided by hospitals in Shrewsbury, Telford, Gobowen and Hereford, making the health board particularly exposed to changes in cross-border treatment costs.

According to Mr Witherden, increased charges from English NHS trusts have contributed to the board's financial difficulties.

He highlighted a request from Wye Valley NHS Trust for an additional £8.1 million to cover a year's rural premium costs associated with cross-border treatment.

The MP argues that the latest £3.4 million allocation is relatively small compared with the additional financial demands facing the health board.

He also pointed to the situation at Llanfyllin Group Practice, where insufficient funding has led to a consultation on the possible closure of Llanrhaeadr Medical Centre.

Practitioners have argued that greater investment in local primary care could help maintain services and reduce the need for patients to seek treatment elsewhere.

Mr Witherden believes similar principles should apply to community hospitals, warning that reducing local provision could ultimately increase costs elsewhere in the NHS.

“The Welsh Government are trying to fill a leaky bucket, when they should be fixing the hole in it,” he said.

“There is a total lack of holistic thinking here. By letting PTHB outsource its problems, they are creating a ticking time bomb for Shrewsbury, Telford, Gobowen, Hereford, and Bronglais; in short, across the entire Mid Wales and borders region.

“We need a proper long-term strategy for the whole region backed by sufficient Welsh Government funding. Anything short is simply spending on failure rather than investing for success.”

The MP's comments add to the debate over whether concentrating inpatient services at fewer locations will deliver the savings and improvements anticipated by the health board.

While centralising services can help healthcare organisations make better use of specialist staff and resources, concerns remain about whether such changes are appropriate for rural communities where public transport is limited and travel distances can be considerable.

There is also a distinction between the specialist hospital treatment purchased from English NHS providers and the community inpatient services currently under review in Powys. It has not been established that reducing community hospital beds would directly increase the cross-border costs highlighted by the MP.

The health board's financial position nevertheless raises wider questions about how healthcare should be funded in rural areas where patients routinely cross administrative and national boundaries to receive treatment.

Mr Witherden has backed a petition calling for a full Senedd debate on developing a healthcare system that places greater emphasis on prevention, local services and fair funding for rural communities.

He was due to visit Bro Dyfi Hospital and attend a public meeting in Machynlleth on Thursday, 8 October, before speaking at a planned demonstration in Llanidloes on Saturday, 10 October.

The continuing debate comes as communities in Newtown, Welshpool and Llanidloes await further decisions on the future of their local hospital services.

For residents, a central question remains whether the proposed changes will deliver more sustainable healthcare without reducing access to essential services close to home.