THE HEALTH Service Executive (HSE) is drawing up contingency plans in case it runs out of money to pay its bills towards the end of the year.
Assistant national director for finance Liam Minihan has confirmed he is a member of a HSE group drafting a national cash management strategy “as a contingency, just in case, in order to prioritise payments in December”.
He warned that if the HSE managers in the west do not adhere to their budgets “we will be heading into serious cash flow difficulties in December”.
“Of course, salaries and wages will be paid, but under consideration is a deferral for example of overtime payments or payments to creditors to 2012,” he said.
The HSE is seeking savings of more than €300 million before the end of the year.
In a commentary accompanying its monthly service report for the year to July, it said it was pursuing savings targets of €249 million as well as further contingency measures of €53 million to support the delivery of a balanced budget.
Mr Minihan confirmed the HSE overspend in the west from Donegal to Limerick was €49.3 million to the end of July.
He told the HSE West Forum: “There is no money at national level. All of the budget holders have been given expenditure limits and they have been set for the remainder of the year”.
That the HSE in the west was not coming in on budget was “unthinkable at the moment”.
“That is why all of the managers have detailed cost-containment plans to break even at year-end.” He warned: “We’re not contemplating finishing the year in a deficit. We would be in breach of our statutory duty.”
Impact’s assistant general secretary Andy Pike said: “The need for a cash management strategy is the symptom of a very sick patient and is not the cure for very serious underfunding of the service. ”
Mr Pike warned if there were moves to defer overtime payments to Impact members by the HSE, “it will be seen as a breach of contract, and legal action will ensue”.
“The HSE needs a more planned approach to its budgeting, but it is working with €1 billion less this year and its 2012 budget will be reduced again,” he said.
Fianna Fáil health spokesman, Billy Kelleher said that it did not represent good planning if the HSE was preparing to run out of money.
“There should be more forward planning in terms of how the HSE spends its money. It is completely unacceptable for example that overtime payments could be with-held from staff especially at a time when there is increased pressure with Christmas,” he said.
