Financial analysis: Hospitals outside Dublin as well as those in the capital are facing potential multimillion euro deficits this year, according to new figures released by the HSE.
Earlier this month, The Irish Times reported that the main Dublin hospitals had told the HSE they were collectively facing a shortfall of around €100 million on their existing budgets for the year.
However, internal HSE financial analyses for the first third of the year indicate that there are also problems developing in hospitals outside of Dublin, notably in the north east, west and south east.
"Hospitals outside the east are increasingly presenting deficits," the overall board of the HSE was told in a financial presentation last April.
The financial report, drawn up by management, said that the most significant of the deficits was €7.5 million recorded in the north east. It said that this deficit was driven by the five general hospitals in the region.
The board was also told that there was a €6 million deficit in the west and an overrun of €5.2 in the south east.
By April, the main Dublin teaching hospitals, the Mater, St Vincent's, St James's, Beaumont and Tallaght had recorded a collective deficit of €27 million. The Connolly Hospital in Blanchardstown had a financial overrun of €5 million. A HSE spokesman said it was still in discussions with hospitals about spending levels for this year. It is understood the HSE is considering a €70 million supplementary funding injection later in the year.
However, informed sources said that hospitals, particularly those in Dublin, had indicated that the gap between expenditure and even the proposed increased budgets could not be bridged by the introduction of new value for money or efficiency measures alone.
Meanwhile, internal HSE financial documents reveal that the overall board was warned by management as early as last February that hospitals were facing deficits of up to €40 million for the year.
"Hospitals in the east of the country are likely to have significant deficits for the full year, based on the February results," the board of the HSE was told in its financial report for February.
"If the period run-rates were to remain static, these deficits would be in the order of €40 million and, as indicated, experience shows that these run-rates will not remain static for the year. It is clear at this point in time that agencies will find it difficult to deliver the type of savings required to achieve balanced budgets through the value for money programme currently being formulated. Alternative action may be required to deliver of financial imperatives as the year proceeds."
