Deeper cuts in care as HSE €89m over budget

Seriously ill patients could be set to face even deeper cuts to their care after it emerged that the HSE is already €89m over budget for this year.

Figures revealed in the health service’s latest performance monitoring report show planned expenditure this year and outstanding deficits from 2011 have resulted in the system struggling to stay within budget by the end of February.

According to the figures, within the first two months of this year total hospital overspend stood at €49m and community services overspend at €29.3m.

As a result, the detailed monthly report has warned frontline services are under threat as the HSE attempts to stay within its €2.02bn annual budget — with hospitals in the worst shape potentially facing a fresh round of cutbacks.

“Hospitals have suffered further budget cuts in 2012 and it is a major challenge for them to implement plans to bring their expenditure back into line with their [funding] allocation,” the official document noted.

“A review has been carried out with the most financially-challenged hospitals.

“Cost savings plans are in place which will require considerable focus and will have an impact on service levels.

“Early indications are that a number of hospitals will have difficulty breaking even this year while maintaining service levels.”

Among the main reasons for the already apparent financial problems are the Budget 2012 health service allocation cuts, which were imposed by Finance Minister Michael Noonan despite a continuing demand on frontline services.

Other issues include private patient income collection being behind schedule by €9.9m or 12% by February, a related increase in people quitting their insurance coverage and returning to the public system, and outstanding hospital deficits from last year.

Among the hospitals facing the worst “cash pressures” towards the end of 2011 were the Galway University Hospital group, Tallaght Hospital, the Mid Western Regional Hospital in Limerick and Our Lady of Lourdes Hospital in Drogheda.

While the health service has in recent years regularly struggled to stay within a dwindling budget allocation, during the recession this situation has become a problem far earlier each year.

“Obviously this matter is of concern.

“If this level of overspend is to continue for the first half of the year there will be very severe cutbacks for the second half of the year,” said Irish Patients’ Association chairman Stephen McMahon.

The over-budget figures emerged as a 40-year-old man who has survived three cancer scares in the past decade was told that he can no longer be given pain relief at the hospital which treated him due to HSE and Department of Health cutbacks.