HSE tells hospitals to introduce cost savings

Spending figures: The Health Service Executive (HSE) has asked all major hospitals to introduce cost-saving measures and value-for-money initiatives in an effort to rein in over-spending.

Official figures seen for the first quarter of the year show that the National Hospitals Office of the HSE exceeded its budget by more than €78 million or nearly 9 per cent.

HSE management has told its board and the Department of Health that it is concerned at the trend and that measures were being taken to address the situation.

"There is concern in relation to the emerging trends on the major acute hospitals following the first quarter's expenditure results. While they are not material in percentage terms, the quantum of variance for one quarter is significant. The National Hospitals Office is now undertaking an assessment of these major hospitals in terms of expenditure, activity and headcount to determine an overall strategy for the remainder of the year," HSE management has told its board and the Department of Health.

A HSE spokesman said the major hospitals had been asked to examine cost-savings.

However, he maintained that it was about "prudent financial management" and that there would be no impact on patient services or development plans

The HSE in the northeast is looking at restrictions on spending in the area after hospitals in the region recorded significant over-spending in the first two months of the year. It is also considering proposals to delay expenditure including the planned appointment of new consultants.

The new internal HSE figures show that, regionally, the worst financial over-runs continued to be in the northeast where expenditure was 22 per cent - or more than €11 million - ahead of budget for the first quarter.

Hospitals in the southeast and in the midwest exceeded their financial targets by 10 per cent in the first three months, according to the official figures.

There was a 9.2 per cent over-run recorded in Dublin/Midlands hospital group while those in south Dublin overspent by 8.5 per cent.

The lowest financial over-run for the first three months of the year, in percentage terms, was recorded by the Dublin/North East hospital group where spending was 6.4 per cent ahead of budget.

The official HSE figures show that St Columcille's Hospital in Dublin had the worst individual financial over-run at more than 46 per cent for the first quarter. Spending at the hospital was ahead of financial target by more than €3 million for the first three months of the year.

Our Lady's Hospital in Navan over-ran its budget for the quarter by nearly 30 per cent, Monaghan General Hospital by 28.3 per cent and Cavan General Hospital by 25 per cent and Ennis General Hospital over-spent its official budget by 23 per cent in the first three months of the year.