HSE’s overspend soars to €300m

The HSE’s financial problems have surged to €300m, with hospitals €151m over- budget and the medical card scheme €92m in the red.

The latest financial performance update from the service shows that, by the end of June, the system was facing an overall 2012 over- spend of €298.7m — up from the previous estimate of €280m.

Among the worst-affected areas was the hospital sector, with the section’s €151m deficit including a worrying €10m overspend at Cork University Maternity Hospital.

Of equal concern is the €92m overrun on the medical and GP card scheme. The medical card scheme provides additional medical support to people who are under a set income threshold, and as such is seen as a key indicator of the hidden health reality of the ongoing recession.

An Irish Patients’ Association investigation, published last Sept, found a shocking one in three people in the country were entitled to medical or GP cards last autumn, including 59% of the Donegal population.

The HSE report said while the community and hospital sector spend has stabilised, it is still too high for the system to cope, with budget cut targets not being met.

As such, it has supported recent HSE circulars calling for hospitals to have a zero- tolerance policy on overtime, the use of agency workers and employing new staff unless strictly required.

The latest update on the health service’s financial difficulties came after correspondence between outgoing HSE chief executive Cathal Magee and Health Minister Dr James Reilly on the matter was leaked.

The letters show Mr Magee, who is leaving this autumn after just two years of a five year contract, repeatedly sought specific information from Dr Reilly on what action to take to lower expenditure.

It is alleged Dr Reilly failed to act fully on the growing deficit warnings, which follow related financial problems in recent years and have led to claims the system could be €500m over-budget by December.

Meanwhile, the Irish Nurses and Midwives Organisation warns the €10m deficit at CUMH and call for cuts is putting new mothers and babies at risk.

The union’s industrial relations officer, Patsy Doyle, told the Irish Examiner the hospital cannot cope with further cuts, as it is 80 midwives short of the 380 recommended in a February Labour Court ruling.

“CUMH deserves to be staffed according to clinical need and not be a constant casualty of external overspend,” she said, adding: “The HSE continues to make decisions purely on finance without having regard for family needs.”

A HSE South spokesperson said: “In order to ensure the planned delivery of services throughout 2012, the CUH Group must remain within budget so that resources are prioritised and that core activities, including emergency treatment and cancer services, are maintained.

“Patient care is the group’s priority and the management team continue to work closely with staff to ensure that any impact on patient services are minimised.”