HSE confident over co-location funding as facility gets go-ahead

THE HSE has said there are no concerns over the financial stability of its controversial co-location plans, despite admitting discussions are continuing over whether banks have the resources to fund the projects.

Beacon Medical Group has received planning permission from An Bord Pleanála to build a €250m private facility on the grounds of the public Cork University Hospital (CUH), with construction starting early next year.

Despite 140 objections from members of the public including local residents, consultants, opposition TDs and Enterprise Minister Micheál Martin, which delayed the decision for over a year, the planning body gave the green light to the project against the advice of its planning inspector.

Beacon said the decision – which is key to the HSE’s own reconfiguration of services in the region – will create 175 single-unit beds, eight critical care units and six operating theatres catering for 11,000 inpatients, 20,000 day patients and 12,000 surgical procedures.

However, while the private health firm welcomed the move as a vital step in health service reform, it confirmed that no agreements are in place with any Irish or international bank over how the development will be funded.

Speaking on RTÉ Radio, Beacon chief executive Michael Cullen said the initial plan was to fund the projects at CUH, Beaumont and the Mid-Western Regional Hospital in Limerick through €70m-€80m investments from three banks. However, he said the “challenging” national economic situation meant discussions would now have to involve smaller funding units from a larger number of as yet unconfirmed institutions.

A HSE spokesperson merely said both the Department of Health and the HSE were “continuing to work with the successful bidders around the banking of their projects” but would not elaborate.

Concern over the financial viability of the co-location project was previously raised by HSE boss Prof Brendan Drumm in March, when he questioned whether the multimillion-euro project was still feasible – a claim repeated by opponents of the plans last night.

“The banks are extremely cagey on anything, so there could be real funding problems with these plans,” said Labour health spokeswoman Jan O’Sullivan.

The latest decision means that Beacon Group has been given the green light for all three of its co-location sites.