HOSPITALS ACROSS the State recorded deficits of €112 million in the first five months of the year, according to new figures compiled by the Health Service Executive (HSE).
The scale of the deficits is outlined in a report presented to the HSE board last Thursday and are likely to prompt a significant scaling back in services in coming months if the hospitals are to break even by the end of the year.
The most significant overrun was at Galway University Hospital, which overspent by more than €14 million, followed by Limerick Regional Hospital, which had overspent by more than €11 million at the end of May. Other hospitals well over budget at the end of May were Cork University Hospital, with €7 million over; Beaumont Hospital, Dublin, €6.3 million over; and Our Lady of Lourdes Hospital, Drogheda, €5.9 million over. Tallaght, Sligo General and Waterford Regional Hospitals were all running deficits of more than €5 million.
The report says the “significant variance” by hospitals “must be managed”.
Overall, the four HSE regions, when all other services are also taken into account, were €133 million over budget at the end of May, with the west region – which runs from Donegal down to Limerick – accounting for the biggest percentage overrun. “Additional measures are required in the west to address the emerging deficit,” the report says.
On Friday staff at Merlin Park Regional Hospital in Galway (part of the Galway University Hospitals group) said they had seen written proposals to close several units at the hospital, including its stroke unit, in coming weeks to cut costs.
Many hospitals are also above their employment ceilings. Galway University Hospital had 162 more staff than its employment ceiling permitted at the end of May while Our Lady’s Hospital for Sick Children in Crumlin was 78 above its permitted employment ceiling.
Meanwhile, community services are over budget by €21 million. One factor is the fact that more medical cards than expected have had to be issued.
The report says “reductions of €60 million are still to be put in place in community schemes”.
While the HSE regions are €133 million over budget, savings in other areas by the executive mean the HSE’s overall deficit at the end of May was €84 million. This is somewhat better than the picture of the HSE’s finances presented a month ago when data up to the end of April showed it recorded a deficit of just over €100 million in the first four months of the year.
Its latest financial report says an emerging problem is that income this year is €45 million or 10 per cent behind target. Much of this is hospital income, with fewer private patients being seen, but the shift of patients to private nursing homes through the “Fair Deal” scheme has also contributed to loss of income.
In addition the HSE’s pay bill “has not reduced by the amount deducted from the HSE as a result of the public sector pay rate changes. The original costings completed by HSE indicated a potential shortfall of up to €50 million. The areas are seeking to manage this within their overall cost reduction programme”.
The report given to the HSE board was only the second to be produced this year. Earlier reports could not be compiled due to industrial action by staff in protest at pay cuts. The industrial action left the HSE at corporate level effectively blind as to its true financial picture in the organisation.
Separately the report says while there have been improvements in waiting times in some hospital emergency departments such as Naas, Limerick Regional and Tallaght in May, there were also “significant deteriorations” at Galway University Hospital and at Beaumont Hospital.