The HSE has acknowledged that weaknesses in its internal controls mean it cannot confirm whether all the medical devices it paid for during the Covid-19 pandemic were ever received.
The matter was discussed in correspondence on 21 May from Ms Mairead Dolan, HSE Assistant Chief Financial Officer (CFO), to members of the HSE audit and risk committee in relation to the annual statement on internal control (SIC).
The correspondence was obtained by the Medical Independent (MI) through Freedom of Information law.
Between 2020 and the end of 2024, the HSE paid €15 million to PMD Device Solutions Ltd for an “innovative respiratory monitoring mechanism” designed to help hospital staff recognise and respond quickly to deteriorating Covid-19 patients.
The devices, which consist of an adhesive sensor and a plastic lobe, are placed on the patient’s chest wall to allow for continuous monitoring of the respiratory rate.
Payments were made quarterly in advance for an agreed number of units.
The arrangement was entered into during the early months of the pandemic under emergency procurement rules. However, the contract was never regularised afterwards in line with standard procedures, according to the correspondence.
“The HSE acknowledges there were weaknesses in controls, particularly, in relation to appropriate goods receipting protocols,” Ms Dolan wrote. “As a result, the HSE has not been able to verify if all of the devices paid for were delivered.”
Work was ongoing to ensure that similar contracts instigated during the pandemic were now being brought into line with normal procurement rules, she outlined.
The HSE CFO has also issued a reminder to managers about adhering to the national financial regulations governing purchasing and receipting. “The HSE has noted in its SIC in previous years that the lack of a single integrated financial [management] system [IFMS] is a key risk and therefore the ongoing roll-out of the IFMS project will significantly reduce the risk of this kind of overpayment occurring in the future,” according to the correspondence.
A HSE spokesperson told MI that during the early stages of the pandemic, the global marketplace was “unstable and hostile” with intense competition for life-saving supplies. As a result, “normal procurement processes were not always possible.”
The HSE operated “with the best interests of the Irish people at the forefront of its decisions and in accordance with EU guidelines and legislation”.
“The HSE has undertaken significant work to ensure that proper governance structures have been applied to all other known suppliers who were engaged during this period. This is materially complete,” added the spokesperson.
PMD Device Solutions Ltd has since entered liquidation, with matters relating to its dealings with the HSE forming part of the process.
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