The Minister for Health, Mr Cowen, is to install his own team of officials and management consultants at Tallaght Hospital after receiving a report of "serious governance and general management problems".
A report commissioned by Mr Cowen from Deloitte and Touche consultants also found a £14 million budget overrun. The report was received by the Minister on Monday and presented to the chairwoman of the hospital board, Ms Rosemary French, and other board members yesterday afternoon. Mr Cowen told the meeting he wanted the report implemented as quickly as possible. He made additional recommendations which he said in a statement were "aimed at resolving the problems and putting the hospital on a firm footing".
The Minister is sending in the officials and consultants to assist the board and management in addressing the weaknesses mentioned by the report.
In a statement last night, Mr Cowen said the Deloitte and Touche report "indicates serious governance and general management problems at the hospital" and he had asked the board for its response to his proposals "within the next few days".
Department of Health sources say the report is "seriously critical", highlighting problems at the hospital, which is run by an independent board but funded by the department.
A budget of £54 million was allocated for the hospital which opened at the end of June, amalgamating the Adelaide, the Meath, and the National Children's Hospital. The report is believed to indicate a revenue overrun of £10 million and a £4 million capital overrun. The Minister has said any overrun will be a "first strike" on next year's allocation. Department officials are currently examining reasons for the capital overruns to see if they are justified. A requirement for an additional £1 million for nonrecurring capital projects is believed to be the only additional funding now being considered by the Department of Health for the hospital.
It is understood the board of the hospital has been concerned about what it believes is a less than sympathetic attitude by the Department of Health for a hospital which opened only in June, and is the only remaining healthcare institute in the State with a Protestant ethos.
However, it is believed the Department of Health feels the board has presided over a massive budget overrun. "The board is autonomous but the hospital is being funded by the taxpayer," said one source.
In his statement Mr Cowen said he would make no other comment on the report until he receives a response from the hospital board. In a statement issued late last night the hospital said the report "makes a series of recommendations to improve the situation of the hospital. The board and management team are studying these proposals carefully and will be discussing them further with the Minister in the near future".
It added that the board and management would not be commenting further, until the board had reached agreement with the Minister.