The Health Secretary has escalated intervention measures at the Cardiff and Vale health board amid concerns over a growing financial deficit.
Jeremy Miles told the Senedd on Tuesday that the region's health board would be moved up to level four of the five-point scale for its finance, strategy and planning.
Special measures represent the highest level of intervention at level five.
Mr Miles said the health board "is reporting a growing financial deficit that will not be addressed without additional intervention and support."
"This means the NHS executive will assess and provide the additional intervention and support required above current arrangements to deliver the required improvements."
CAVUHB chief executive Suzanne Rankin said the decision had been made due to reduced confidence over the health board's financial position - and its forecast deficit - for the current financial year, along with concerns over how to tackle its financial problems.
She said: "While it is disappointing that the escalation status has increased, there has been considerable effort from colleagues across the organisation to improve the financial position and understand and learn as the next financial year approaches."
"We know that more work must be done, and we remain committed to turning the deficit around and enhancing quality, efficiency and productivity across the organisation."
"The health board will continue to work closely with Welsh Government to address these challenges and reduce the organisation’s escalation status."
Ms Rankin, who was appointed as chief executive in 2021, said the board also recognised planned care and diagnositics was "lower than expected" and understood the impact on patients.
She added: "The health board is implementing an improvement plan to drive progress in reducing waiting time, and it is encouraging that January 2025 saw a reduction in the overall number of patients waiting more than eight weeks for diagnostics."

Jeremy Miles also told MSs that mental health services would be de-escalated from level four to level three at the Hywel Dda and Swansea Bay health boards, along with cancer services at Cwm Taf Morgannwg and leadership at Hwyel Dda.
But none of the local health boards had seen improvements in their emergency services - with the troubled Betsi Cadwaladr health board in the North remaining under special measures.
Mr Miles also escalated intervention measures at Digital Health and Care Wales (DHCW) to level three, over "serious concerns about the organisation's ability to effectively deliver a number of major programmes".
Escalation levels remain unchanged at Powys and at Aneurin Bevan, which is in level four for finance and level three for urgent care.
"These decisions have not been taken lightly," the health secretary added. "When implemented correctly, escalation, intervention and support can – and, in my experience, does – have a sustained impact on an organisation and the care and services it provides to the public."
Russell George, who chairs the Senedd's health committee, pointed out that every one of the seven local health boards remains in some form of Welsh Government intervention.
The Tory said Betsi Cadwaladr has been in special measures for most of the past decade, with "no end in sight" and waiting times more than doubling in that time.
Mabon ap Gwynfor, Plaid Cymru's shadow health secretary, welcomed some "glimmers of hope" but warned of a lack of any plan or timetable.
He said: "This reflects the inescapable truth that under the leadership of this government: what should be exceptional has become the norm. Failing services have been normalised."
Additional reporting by Chris Haines - ICNN Senedd reporter

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