HSE will overspend by €501m this year

The Health Service Executive now expects a revenue shortfall of €501m by year end.

It says a supplementary estimate for the year will need to include an expected overrun on costs incurred by the State Claims Agency for health service claims.

The health authority’s performance assurance report for August stresses that in excess of €250m — about 50% of this year’s deficit — relates to budget reductions.

It says the reductions were outside of its control and not deliverable. Such reductions included €108m in pay savings and €30m in pensions excess.

Spending by the HSE to the end of August, at €8.058bn, was €327m more than its budget of €7.731bn.

The HSE had warned in its 2014 National Service Plan that it was facing a severe financial challenge this year because of a reduction in its funding base and the significant additional savings that would be needed.

The acute hospital sector, including palliative care, had a deficit of €182.9m at the end of August — 56% of the overall deficit.

Health Minister, Leo Varadkar said the performance in the hospital sector was of “great concern”.

“Though there are considerable variations among regions and specialities, waiting times in general are clearly getting worse.

“There are roughly 700 delayed discharges in our acute hospitals and the waiting time for placements under Fair Deal at 15 weeks is contributing to this,” he said.

According to the HSE, at the end of August 704people were awaiting alternative care arrangements.

Mr Varadkar said four out of five adults were getting their procedure or hospital appointment within eight months of referral, but he was concerned that the number of people waiting far too long was increasing.

“We will also need further action to speed up delayed discharges and reduce the number of people who are waiting far too long for operations or out-patient appointments.”

Mr Varadkar pointed out that any new initiatives and resources provided for next year would not show up in performance and accountability reports until the middle of next year.

“So, the numbers are likely to get worse over the next few months before they get better,” he said.

Earlier, the director general of the health service, Tony O’Brien, told the Joint Oireachtas Committee on Health and Children that acute hospitals would have a €273m shortfall by year end.

Fianna Fáil spokesperson on Health Billy Kelleher said Mr Varadkar needed to urgently tackle hospital waiting lists as the scale of the crisis across the country continues to spiral.