Galway hospitals bleeding cash despite bail-out
The Saolta group of public hospitals, including three in Galway, had a budget deficit of €23 million in 2015 – despite getting a multi-million Euro bailout from the exchequer mid-year.
The bulk of the budget shortfall can be explained through an increase in payroll costs, increases in the cost of drugs, and extra clinical costs due to increased activity in some areas.
Saolta, which includes UHG, Portiuncula and Merlin Park, recorded a year-end deficit of €23 million in 2015.
This is despite the fact that the group received a supplementary allocation of €29 million during the year.
In its annual report, published this week, the group noted it had faced a “significant financial challenge from the outset of 2015” because it had been allocated a budget that was 3.1% or €20 million below its 2014 allocation.
Saolta’s payroll costs stood at €530.9 million in 2015, some €20 million more than the previous year.
The group said “all elements of pay have increased” due to national agreements, increased in-patient, Emergency Department and day-care attendances, as well as the “winter surge”, which “impacted significantly on pay expenditure”.
Non-pay related expenditure went up by €21.3 million, as clinical costs rose due to an increase in activity. There was also “extra pressures” on drugs spend, which grew by €8.1 million.
Patient related income is down by €2.4 million compared with 2014. According to Saolta this is due to “patients not availing of their private insurance cover” and a reduction in the number of patients who have private insurance.
See full story in this week’s Connacht Tribune.