Report confirms HSE deficit of €281m to end of May

THE HSE has told the Government that “urgent remedial action” is required to deal with a significant deterioration in its overall financial position.

Official figures to be published today will confirm the HSE showed a deficit of €281.609 million to the end of May, an increase of over €80 million in one month.

Details of the HSE’s financial position comes as the Cabinet sub-committee on health is scheduled to meet today to consider the deficit.

Minister for Health James Reilly is expected to put forward proposals for tackling the overrun at the meeting, which is likely to include Taoiseach Enda Kenny, Tánaiste Eamon Gilmore and Minister for Public Expenditure and Reform Brendan Howlin.

The HSE report for May says the hospital sector is responsible for €133 million of the deficit and it warns further cuts are necessary. It says the deficit in the hospitals is being driven by the higher than planned levels of activity.

“A number of hospitals have particular problems which require continuing aggressive implementation of the 2012 cost-containment plans, as well as additional remedial actions. The issue of the gap in income remains unresolved.”

The report says Limerick Regional Hospital has a deficit of €10 million, Galway University Hospital €8.6 million, Beaumont Hospital €11 million, Tallaght €7.5 million, Our Lady of Lourdes, Drogheda €7 million, St Vincent’s University Hospital €6.4 million, Mater €5.4 million and Cork University Hospital €6.6 million.

The report says the HSE primary care reimbursement service has a deficit of €65 million, the largest component of which relates to the cost of drugs.

HSE proposals for cost savings, including cuts in hospital beds and elective activity as well as using some unspent funds originally earmarked for mental health and primary care development services, were rejected by the Government last week.