While HSE plans to address financial problems, it warns of projected overrun of €300 million for the year, writes MARTIN WALL, Industry Correspondent
THE HEALTH Service Executive (HSE) has recorded a financial deficit of €147 million in the first six months of the year, new official figures show.
In a document given to trade unions yesterday, the HSE said that it was currently putting plans in place to address its financial problems.
It said that it would need to consult with trade unions when these cost-containment plans were finalised.
The HSE warned that, on an annualised basis, its projected overrun could be €300 million.
The HSE said that it was facing a projected deficit on its community drug schemes and also financial pressure in hospitals, due to increased service levels.
It also warned that, based on trends to date, there would be a shortfall in the amount that the organisation estimated it would generate in value-for-money savings for the year.
The HSE's full financial results for the first six months have not yet been published, and the extent of its cost-containment plans have not yet emerged.
However, internal documents drawn up by HSE management in early June indicated that it was planning to introduce additional cost-containment measures aimed at generating savings of €193 million over the coming months.
The June report forecasts that the various community schemes, including the demand-led drug schemes, would face a projected deficit of €153 million for the year.
It also said that the hospital sector was facing a shortfall of €248 million, although it was seeking to claw back €150 million in cost-containment measures.
The report also revealed that the HSE believed it would have to seek an additional €100 million from the Government to meet a shortfall in the nursing home repayment scheme this year.
The HSE received €150 million to meet claims under the scheme this year.
However, it is now believed that when the administration of this scheme closes in the autumn, the final bill for the year could be close to €250 million.
The financial report drawn up by management last month also revealed that the HSE would need about €70 million to meet the cost of implementing the new consultant contract - for which no provision was made in the Budget this year.
The HSE has embarked on a recruitment campaign for more than 100 additional consultants to be appointed under the new contract.
It will also have to pay significantly higher salaries for existing consultants who opt for the new deal, which would see them work over a longer day and have new restrictions on private practice. The salary scales for the new contract run to €240,000 per year.
Recruitment restrictions currently in place in the HSE, which now has around 2,700 fewer people on the payroll than last autumn, are set to continue and perhaps be intensified in the weeks ahead.
Around 30,000 healthcare staff, who are members of the trade union Impact, have been engaged in industrial action for more than one month in protest at the recruitment restrictions.