Large public hospitals warn they could have to curtail or close services as deficits exceed €340m

Voluntary hospitals, including some of the largest in the country, are warning they may be forced to “restrict, delay or potentially close services” as a result of large scale financial deficits which now stand at more than €340 million.

The Irish Voluntary Healthcare Association (IVHA) argues such a move would raise “serious concerns around patient safety”.

The association has asked the Health Service Executive to address what it describes as “critical liquidity issues”.

However, the HSE said it does not have the money to contribute to paying off the historic financial deficits of voluntary organisations operating in the public health system, arguing that it did not receive sufficient funding from the Government this year to meet its needs.

The association said its members were worried at the risk of trading while insolvent as a result of carrying such large-scale deficits.

“The cumulative impact of the historical deficits being carried by our members, together with the current shortfall in 2024 budget allocation, means our member organisations are facing critical liquidity issues. This will impact services raising serious concerns around patient safety. As providers of demand-led services there is very little our members can do to address the scale of the financial deficits/underfunding,” the representative body said in the letter to the chairman of the HSE board Ciarán Devane.

Voluntary hospitals receive the bulk of their funding from the State and staff are considered to be public-service personnel. However, they are independent of the HSE and have their own boards.

Such hospitals include Tallaght, the Mater, St James’s, St Vincent’s in Dublin as well as the Mercy in Cork. Maternity centres such as the Rotunda, the Coombe and the National Maternity Hospital are also voluntary institutions.

IVHA chairman Liam Dowdall said that in April its member hospitals had a total shortfall in funding of €344 million and the boards of its member hospitals had been forced to take legal and financial advice regarding the risks of trading while insolvent.

“This is solely due to the lack of any clear indication from the HSE regarding the provision of cash/bank overdrafts to fund their existing resources. Hospital boards are being asked by their auditors for assurances from the HSE regarding funding and the appropriate liquid resources (cash/bank overdrafts) in 2024 to allow them to continue to operate their services.”

The IVHA in the letter did not specify the type of hospital services that could face potential curtailment or closure due to the financial difficulties.

In a statement to The Irish Times the IVHA said the financial picture for voluntary hospitals was deteriorating. It said at the end of last year the combined level of deficits stood at €327 million but now were at €344 million.

“The scale of these deficits raises significant liquidity concerns which the boards of the hospitals are forced to consider. Auditors of several hospitals have also sought assurances from the HSE regarding funding and liquidity, assurances which have not been forthcoming.”