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‘Completely unrealistic’ budgeting impacting health service – IMO

By Mindo - 28th May 2026

Unrealistic budgeting is having a “hugely negative” effect on the health system, according to the IMO.

In a statement, the Organisation said it was “unreasonable” to expect the system to run on figures that did not reflect the demand of a growing and ageing population, with increasingly complex treatment needs.

The IMO welcomed the publication of a Fiscal Advisory Council analysis earlier this week which “identified bad budgeting” as a key reason for overspending in the health system.

“No health system can balance the books if the financial targets it sets for itself are completely unrealistic,” said Prof Matthew Sadlier, IMO President.

“We are in a bizarre situation now whereby the Government is setting itself up to fail by delaying the introduction of multi-annual funding and setting targets that can never be met.”

He said that it appeared that the Government was unwilling to accept the reality of the needs of a growing and ageing population. “If we want to create a world-class health system, we need to properly resource the system with the right amount of beds and doctors, and we cannot be slaves to farcical yearly targets that everyone who works in the system knows we cannot hope to achieve.”

He noted a recent IMO survey which suggested that 98 per cent of doctors believe cost-cutting measures recently announced by the HSE will negatively impact patient care.

“The IMO has consistently said that if we are to promise a health service that delivers for patients, we must fund it, or else be honest with the public and say what cannot be done within the fiscal restraints.”

He added that the removal of private practice from public hospitals had created a gap in funding. Prof Sadlier said the Government had promised to replace that funding but said it was unclear as to the process for identifying and replacing the lost income upon which the health system relied.

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