Radical cost-cutting will hit patients, warns hospital chairman

PATIENTS and the teaching status of Dublin’s Mater Hospital are likely to suffer because of radical cost-cutting measures, its chairman has claimed.

Speaking at a recent board meeting, John Morgan said he had received a range of internal correspondence expressing “sincere and deep-felt opposition” to the perceived extreme nature of the board’s action.

The cost-cutting measures, announced in March, include a decision to reduce patient admissions by 3,200 this year; the closure of 115 beds by March 2004; reduction of overtime, on-call levels and agency payments; and the non-filling of vacancies as they arise.

Mr Morgan warned the actions of the board might “damage the fabric of the hospital”. Concerns were also raised as to the risk to the Mater’s standing as a major teaching hospital, its reduction to an A&E facility and the loss of necessary skills which would be required for recovery if bed closures were prolonged.

The hospital’s Financial Remedial Plan is designed as a nine-month campaign to regularise its finances and ensure it is in a position to “resuscitate the hospital” at wintertime and be equipped to open up on a full-time basis. The hospital is facing an €18.2 million deficit this year.

Commenting on the cost-cutting to Medicine Weekly, Dr Peter Kelly, consultant pathologist, said the plan had effectively been imposed on the hospital by the Eastern Regional Health Authority through the funding mechanism.

He said: “We will see by September/October. If as a result of the expected autumn and winter increase the hospital is forced to re-open beds, then the savings intended by the plan will not be achieved.

“If they can stick to the plan despite the increase, patients will suffer even more.” Dr Kelly said he would be fearful of the consequences of a major accident or disaster occurring while the plan is in place.

In March, the hospital calculated that owing to i ncrements under the Programme for Prosperity and Fairness, regular salary increments, pensions and both medical and general inflation, it would need an allocation of €167.3m to provide similar levels of service as that delivered in 2002. However, the funding allocation from the ERHA is €155.2m. Legislation requires that the hospital clears any deficit within 12 months of it being incurred.

The Mater is an acute hospital with 550 beds and 2,500 employees. It treats more than 170,000 patients a year. It houses a number of specialised national units whose services are available to patients around the country. It is also the designated hospital for the National Lung Transplant Programme.