A CONSULTANCY firm which drew up a report on possible cost-containment measures for HSE West was paid €90,000 for its work.
The report from UK consultants Mott MacDonald recommended a range of options for cost-cutting, including the termination of 1,000 temporary contracts and the possible “closure of a hospital” in an attempt to help HSE West break even by the end of the year.
Overall the four HSE regions were €133 million over-budget at the end of May, with the west region – which runs from Donegal down to Limerick – accounting for the biggest percentage overrun.
Asked a range of questions about the Mott MacDonald report yesterday, the HSE West said the company was given the contract to assess cost-containment measures in the west in April.
“The contract was awarded after a public tender process in April 2010. The Mott MacDonald team was made up of medical, nursing and accountancy professionals, and the study included on-site visits to hospitals and community services across the West area.
“Along with price, one of the criteria for selection was their in-depth knowledge of the healthcare environment,” it said.
“The report was completed in June. The cost of the report was €90,000, including VAT.”
Details of the report's contents, which were revealed in The Irish Timesjust over a week ago, have caused widespread anger among unions representing health service staff in the west.
The HSE claimed the report, which set out possible savings of between €44 million and €54 million, was just a guide for management and no firm decisions had been taken.
However, it maintained that nothing was “on or off the table” as it faced a deficit of €90 million by the end of the year unless action was taken.
The HSE is this week due to produce a range of answers to questions posed by unions at Labour Relations Commission talks on the cuts last week.
Janet Hughes, assistant general secretary of Impact’s western division, claimed the outside consultants were just brought in to assess proposed cost-cutting measures already drawn up by management.
“It’s what they call an ass-covering exercise, an exercise aimed at giving credibility to what they had decided. And if that is what public money is for, there you go.”
She added that 12 nurses or clerical officers could be retained in their jobs from now until the end of the year for the money paid to Mott MacDonald for the report.
She said the HSE planned to use the sacking of staff to close services. “We know managers have been told to issue notices of dismissal by the end of this week.”