HSE and St John of God agree funding deal 

Bernard Gloster said he was pleased to have arrived at "a satisfactory solution" to allow the care group to continue delivering important care to the 8,000 children and adults using their services. Picture: Sasko Lazarov/Photocall Ireland

The care needs for about 8,000 people with intellectual disabilities and mental health needs has been secured after a funding agreement was reached between Saint John of God Community Services and the HSE.

It follows intense discussions between both sides following the shock announcement by one of the largest intellectual and mental health service providers earlier this month that it planned to transfer its services to the HSE by August after prolonged focus on the charity’s finances including a deficit of €32.5m, and following a similar proposal in 2020.

Despite the fact that funding talks were ongoing, the group, a S38 agency provided with funding under the Health Act of 2004, claimed the move was linked to a low level of state-provided funding.

HSE chief executive Bernard Gloster criticised the announcement, and said it caused unnecessary anxiety to the 8,000 people who relied on Saint John of God for services, insisting that it was a fully-funded service with a breakeven position for recent years.

But in a joint statement yesterday, both sides said agreement has now been reached to enable the service to continue and confirming that Saint John of God’s decision to transfer services has been withdrawn.

“There is a commitment to the in-year funding for 2024, and there is a guaranteed timeframe within which final decisions will be made about the issues arising from the historical deficit in St John of Gods Community Services,” the statement said.

The care group’s chief executive, Clare Dempsey, said it was a welcome development.

“This agreement represents a positive outcome for all parties and is certainly in the best interests of the 8,000 people to whom we provide intellectual disability and mental health services around the country,” she said.

“I know it will be a matter of relief to many thousands of people.

“The talks process with the HSE brought many difficult issues to the table over recent weeks.

“I believe we have emerged from this process with a broader level of understanding of each other’s positions and a new more partnership-oriented approach towards addressing the underlying problems that both we and indeed our sector faces, and that from here we can hopefully advance the wider agenda for all in a more positive manner.

Mr Gloster said he was pleased to have arrived at "a satisfactory solution" to allow the care group to continue delivering important care to the 8,000 children and adults using their services.