Reilly warns of difficult times for hospitals

HOSPITALS must stick to their budgets even if the measures needed attract negative publicity, Health Minister James Reilly has told the Health Service Executive.

The minister expressed his grave concern about the health authority’s 2011 budget overrun of €184 million in a letter to HSE chief executive Cathal Magee.

The HSE’s latest financial results show that hospitals are responsible for about €100m of the deficit, with community services responsible for about €34m.

“Such an overrun cannot be countenanced given the state of the national finances and this country’s obligations under the EU/IMF understanding,” he said.

The Mid-Western Regional Hospital in Limerick has the biggest spending overrun at €130m and is 26% over budget.

Mr Reilly said corrective action was needed now to avoid the need for more drastic “expenditure curtailment” later in the year.

He was concerned that there would be a significant overrun at the end of the year if existing spending trends remained unchecked.

“The reality is that there is a limit to the quantum of services that can be provided within the resources currently available to the health services,” he said.

He said difficult decisions would have to be made by hospitals and local services in order to “prioritise” services within available budgets.

He realised that the measures required to achieve budgetary compliance would inevitably attract critical comment locally and nationally.

“It will be important, therefore, that individual hospitals and services are ready and able to explain and defend whatever measures they decide to take to deliver on their budgetary and service delivery responsibilities,” he said.

He again stressed outside Our Lady’s Children’s Hospital in Dublin yesterday that there would be no money available.

“The days of crying help at the end of the year and putting their hand out are over. We don’t have the money,” he said.

According to the HSE’s financial report, pay contributed significantly to the overall deficit at the end of April. Some hospitals were also running up very big deficits and the health authority said considerable local action was required to bring them back to “financial stability”.

It noted that deficits had risen to €99m in April, with no sign of expenditure reversing. “Major actions will now be necessary to bring hospital expenditure into line with budget,” the HSE said.

A number of hospitals reported an increase in the complexity of cases presenting and higher numbers of elderly ill patients being admitted. It added that the winter vomiting bug had also put additional pressure on the hospitals.

Meanwhile, Taoiseach Enda Kenny came face to face with patients who will bare the brunt of any cutbacks while visiting Roscommon Hospital yesterday.

The group, who were representing the local Hospital Action Committee, hit out at the Fine Gael leader over leaked plans allegedly outlining significant reductions to the facility’s emergency department from next month.