HSE boss in 'absolute shock' over mental health service provider's announcement

The CEO of the HSE, Bernard Gloster, claimed the sudden announcement is causing unnecessary anxiety to the 8,000 people who rely on St John of God for intellectual disability and mental health services. File Picture:  Sasko Lazarov / Photocall Ireland

The HSE chief has written to St John of God community services to express “absolute shock” at its announcement that it is transferring services to the HSE.

Bernard Gloster claimed the sudden announcement is causing unnecessary anxiety to the 8,000 people who rely on St John of God for intellectual disability and mental health services.

While St John of God claimed the move is linked to a low level of State-provided funding, Mr Gloster strongly disputed this and pointed to ongoing talks.

“The HSE will have no alternative but to respond to the very misinformed public narrative which has been created today,” he wrote.

“St John of God is a fully funded service with a breakeven position for recent years and all of the protections afforded to a S38 body. In that context, your actions today can be nothing other than a source of great concern." S38 refers to agencies provided with funding under the Health Act of 2004.

The move by St John of God, which is one of the largest intellectual and mental health service providers, follows prolonged focus on the charity’s finances including a deficit of €32.5m, and follows a similar proposal in 2020. 

Its chief executive Clare Dempsey said it was “ a very sad day” for the organisation.

“We are confirming with profound regret and deep disappointment that due to the failure of an extensive engagement process with the HSE, we have initiated the plan to transfer responsibility for service provision to the HSE,” she said.

There will be a “complete cessation” of their involvement by August 15, she said.

St John of God has serious concerns around their “accumulated deficit and the sustained lack of adequate funding to allow for its continued financial and operational sustainability,” she said.

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However, the HSE in a formal statement sharply criticised the move, saying it is “shocked and disappointed”.  “We have worked with them over the last number of years on funding-related matters,” a spokeswoman said.

“St John of God's services have had an in-year breakeven each year for several years, with the help of substantial HSE support, and there is no reason to believe that 2024 will be any different.” 

The HSE remains open to meetings, she said. “But to emphasise again it has sufficient funding and assurances to continue to provide its services and to pay bills as they fall due.

“As an S38 organisation, they are afforded all of the protections associated with that status, and their staff are paid and pension treated as public servants.” 

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The development was also concerning for Inclusion Ireland CEO, Derval McDonagh. "Although there has been a concern for some time that this outcome would happen, the news today will no doubt be a shock for many people with intellectual disabilities and their families,” she said.

The charity’s finances previously made headlines when a HSE audit, published in 2018, showed for 2013 the total cost of additional salaries and compensation payments paid to 14 senior managers through private payroll was €2.4m.

Revelations by whistleblowers then and again in recent years drew attention to concerns, which management said were addressed with significant reforms in the meantime.