Budget overruns: Management in some Health Service Executive (HSE) regions are considering the introduction of new spending restrictions after hospitals recorded significant financial overruns in the first two months of the year, writes Martin Wall
An internal financial analysis drawn up for the board of the HSE last month reveals that overruns of up to 47 per cent were recorded on expenditure by some hospitals in January and February.
Regionally, hospitals in the HSE North Eastern area fared worst with a collective overrun of 21.1 per cent over their official budget for the first two months of the year.
A HSE spokeswoman said yesterday that management in hospitals in the northeast were examining options to help them operate within approved funding allocations for this year.
"This examination is being carried out in conjunction with the HSE North East Hospitals Network and includes a review of historic cost and funding levels at the hospitals," she said.
It is understood that among the restrictions being considered are a suspension on the filling of new posts and limiting the use of agency personnel.
The internal HSE report shows that, collectively, hospitals in the northeast network overran their official budget for the first two months of the year by nearly €7 million.
Together, hospitals in the northeast group spent just under €40 million in the first two months of the year as against a planned expenditure level of just under €33 million. Within the northeast region, the report shows that Monaghan General Hospital overran its budget by €876,000, or 30 per cent, for the first two months of the year while Cavan General Hospital had an overspend of 26 per cent in the same period.
Our Lady of Lourdes Hospital in Drogheda overspent its official budget of €11.85 million for the first two months of the year by €2.3 million or some 19.4 per cent.
Nationally, the hospital with the largest individual overrun in the first two months was St Columcille's in Dublin which, according to the report, spent over €2 million, or 47 per cent, more than its official budget of €4.297 million for the period in question.
The report says that Letterkenny General Hospital spent €2.779 million, or 22.3 per cent, more than its official budget of €12.48 million for the first two months of the year.
The report says that, overall, in the first two months of the year the National Hospitals Office of the HSE spent €51 million more than its official budget of €584 million for the period.
The report says the timing of expenditure on new developments would be a significant factor in achieving financial breakeven in the national hospitals pillar.
It says the West/North West Hospitals Group recorded an overrun of 13 per cent on its budget for the first two months while the South Eastern Hospitals Group had an overrun of 11.4 per cent on its budget for the period.
The Dublin South Hospital Group had an overrun of 8.5 per cent in the first two months of the year while the Dublin/Midlands Hospitals Group recorded over-spending of nearly 8 per cent in the period. The Dublin/North East Hospitals Group recorded the lowest negative financial variance for the period at 4.2 per cent of the official budget.
The financial figures for the first two months of the year were provided by management to the HSE board last month. The financial reports are generally provided a number of months in arrears.
The report says that overall HSE expenditure for the first two months was running at €69 million over budget for the period - a negative variance of 4.1 per cent.