HSE to place all new capital proposals on hold

THE HEALTH Service Executive has put on hold all new capital projects except where contracts have already been entered into.

As a result, the projects now in doubt include the planned development of the new National Rehabilitation Hospital in Dublin.

The board of the HSE was told in a report drawn up by management last week that as a result of reduced capital funding from the exchequer all capital commitments had been reviewed.

“All non-contracted projects will not be proceeding. Only costs associated with projects for which the HSE is contractually committed will continue,” the report states.

The new hospital building and equipping programmes originally planned for this year will remain on hold until a review of new HSE capital proposals being carried out by the Department of Health is completed.

Sources have said that projects which were due to start this year, such as the development of the rehabilitation hospital, new AE facilities in Wexford and a new psychiatric unit in Letterkenny had been delayed as a result of the funding cutbacks.

Senior HSE sources say that no projects had been cancelled.

Informed sources said the projects which had been earmarked to commence this year and where no contracts had been entered into had been placed on hold pending an assessment of the HSE’s proposals for a revised capital programme for this year which is being considered by Minister for Health Mary Harney.

The report given to the HSE board last Thursday says that despite the freezing of new capital developments for the moment, it was estimated that there would be an overrun on the capital side of some €30 million this year.

It is understood that it was originally envisaged under the National Development Plan that about €540 million would be earmarked this year for HSE building and capital projects around the country.

However, sources said that as a result of various Government cutbacks the amount now available to the HSE for capital expenditure this year stands at less than €380 million.

HSE sources said that almost all of this money will be taken up by projects which are already under way or where contracts have been entered into.

Such projects include the €96 million development of new cardiac and renal facilities at Cork University Hospital and the new €100 million Mater adult hospital in Dublin. Both of these projects are under way.

About €60-€70 million is also being spent on the development of new community nursing units and, it is understood, that these projects as well as the provision of linear accelerators for new radiotherapy services at Beaumont and St James’s Hospital will continue.