The report also recognises further potential for additional long-term savings, which the NHS can make if it continues to reform and reshape services.
The Finance Minister and I will now work together over the summer to determine what more we can do to support new models of service delivery that strengthen the care and support provided in local communities, and respond to the challenges identified in this report”
This would have to be at a rate not seen in the history of the NHS or other countries' health systems.
Adam Roberts, lead author and Senior Analyst at the Nuffield Trust said:
“Our analysis reveals, for the first time, the scale of the task ahead regarding the Welsh NHS’s finances.
"Money for the service is already tight – NHS funding is likely to be 3.6% lower in real terms at the end of the next financial year than it was in 2010/11 – but the big unknown is what will happen after the 2015 spending review.
The pressures facing the NHS in Wales outlined in the report include: