HSE bails out hospital charity as accounts empty

THE HSE has been forced to bail out a major hospital charity with taxpayers’ money.

The Irish Examiner has established that the Cork University Hospital (CUH) Foundation received the state funding because accounts ring-fenced for projects specifically linked to donated finances were empty. The foundation is the subject of an ongoing yearlong HSE internal audit.

In one specific case, a now-built paediatrics garden at CUH which was meant to be funded by a €60,000 donation from Boston Scientific, received €21,368 in taxpayers’ money.

It is also understood that at the end of 2008, a total of 18 hospital wards believed they had €358,000 lodged with the foundation.

This included €122,596 from paediatrics, €77,016 from Cork University Maternity Hospital (CUMH), €41,155 from dialysis, and more than €16,000 between the neurology and radiotherapy departments.

However, the foundation’s own financial documents for that year show its accounts were empty at this time after its administrative expenses rose from €3,428 in 2007 to €445,302 in 2008.

This included €365,000 in donated money for frontline services spent on “consultancy fees”, €56,512 in “professional fees” and €4,156 on conferences, meeting rooms and unspecified “outings” which meant there was no money left in the group’s accounts.

As a result, the HSE was forced to use taxpayer funds to pick up the bill for projects which should have been cost-neutral and paid for via specific donations to the hospital. The reason why this step was taken is under investigation.

The HSE has repeatedly refused to clarify why it was forced to intervene other than to confirm it is part of the audit.

After the Irish Examiner revealed the investigation last week, a series of follow-up questions were sent to the HSE. One query asked how much public money was transferred to the foundation’s accounts.

The HSE said the only money provided was a separate €100,000 innovation fund for “costs incurred in carrying out research work” and radiology department “issues”.

However, when it was subsequently asked whether the HSE took over the expenditure of specific works or projects due to be funded by public donations because the foundation had no money left to pay for them, a spokesperson confirmed this is subject to the audit.

Meanwhile, six new board members have been appointed to the foundation in a bid to reform the group.

They include doctors Prof Michael Molloy, Prof Michael Maher, and Michael Horgan; solicitor Eamon Murray; retired sports store owner Ray Cummins; and businessman Finbarr Dennehy. CUH chief executive Tony McNamara remains a director on the board but has been replaced as secretary.