The Nuffield Trust report says if the NHS does not receive additional funding, it would have to improve productivity at a record rate and sustain it for a period of time in order to close the financial gap of £2.5bn by 2025/26.
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:
- Population growth
- Longer life expectancy
- Rising number of prescriptions
- Staff wages