St Vincent’s University Hospital forecasts €21.5m shortfall for the year

St Vincent’s University Hospital in south Dublin has said it is anticipating a funding shortfall of €21.5 million for this year while some key services are unable to meet demands.

The hospital said this financial estimate was based on current management assumptions which were subject to change based on service demands and available resources.

“We continue to negotiate with the HSE regarding appropriate levels of funding for our service,” it said in a statement at the weekend.

Management told the hospital board in July that its radiology department was unable to meet increasing demands while some surgical services were also facing challenges.

“The radiology department continues to be unable to meet demand and is not adequately funded or resourced to keep pace with increasing referrals. The impact is seen in the increasing outpatient wait-list and not meeting the recommended clinical time frames for imaging,” it said.

Hospital management said this had been highlighted to the HSE as one of the “highest clinical risks” for St Vincent’s but no additional resources had been provided up to that time.

It said emergency department pressures continued to impact on scheduled care activity, and many of the surgical services could not meet demands.

“Theatre capacity is an issue and access to a surgical hub is urgently needed. This is also one of the top five risks and to date we have only received an acknowledgment and verbal feedback that the paper is being discussed with the chief executive officer of the HSE to consider options to address the risks,” management told the board in July.

St Vincent’s University Hospital is just one of many parts of the health service facing financial difficulties.

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The Irish Times reported on Saturday that the Department of Health had predicted the HSE would have a cash deficit of about €1 billion by the end of 2026. It also suggested that the HSE would overspend on its authorised budget for pay by about €142 million.

Earlier this month the HSE introduced new restrictions on recruitment and promotions in four regions which were over budget. The move has been condemned by doctors as a de facto recruitment freeze which “presents clear and significant risks to patients”.

The report drawn up by management at St Vincent’s University Hospital for its board in July suggested that it could face a year end funding shortfall of €24.4 million. However, the hospital said last weekend this forecast had now been scaled back to €21.5 million.

Hospital management told the board in July that its accumulated deficit and current year funding gap “will give rise to a requirement for cash beyond our profile limit in 2026”.

It said it received approval in April for a €22 million cash acceleration – which meant bringing forward funding originally scheduled for December – and that a second cash acceleration could be required later in the year.

The hospital said spending on agency staff and overtime “remains high due to continued use of surge beds”.

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Management told the board of the hospital in July that the hospital “continues to be in high escalation with the additional beds remaining open on a 24/7 basis in some areas”.

“Additional staff continue to be sourced via redeployment and overtime, while keeping the usage of agency staff to a minimum.

“The nursing department continues to be challenged with caring for a number of patients who are displaying behaviours that challenge. St Vincent’s University Hospital are liaising with community services to provide alternative accommodation for these patients,” the management report states.