Prospect of service reduction raised at TUH due to finances

Tallaght University Hospital (TUH) may “have to review the services it provides” as a result of financial pressure, the hospital’s AGM heard in May.

At the meeting on 26 May, the hospital’s board approved TUH’s 2024 annual financial statement.

According to minutes of the meeting, the auditors from Deloitte pointed to “material uncertainty” over TUH’s ability to continue as a going concern.

However, it was noted that “the HSE has not given any indication that it will withdraw its financial support for the hospital”.

TUH’s allocation last year was €422.9 million.

Despite balancing its 2024 accounts, TUH ended the year with a net current liability of €18 million and a cumulative deficit of €24.4 million.

While it was noted that the cumulative deficit had not increased during the year, it was projected to climb to €33 million in 2025 unless additional support was secured.

As a result, Chief Financial Officer Mr Dermot Carter told members that the hospital may have to examine the services it provides.

While members discussed the potential to reduce services, the meeting heard this could endanger patient safety and have a “reputational risk” for the hospital.

Consultant Nephrologist Dr Peter Lavin said that “reducing one service could impact numerous services” due to interdependencies.

The board heard that TUH has repeatedly raised funding concerns with the HSE.

Members also discussed the possibility that failure to adopt national ICT systems could lead the Executive to “withhold funding”.

“It was noted the matter was discussed at the finance committee who agreed TUH needs to prepare for same and determine if there is an acceptable solution,” according to the minutes.

When asked by the Medical Independent for an update on its financial situation, a TUH spokesperson said the projected deficit is now €1.5 million for 2025.

“Services at the hospital have not been impacted,” they added.

Recently, TUH launched a new strategic plan, covering the year 2025 to 2029. The plan was developed in response to growing demographic and financial pressures.

The document notes that the hospital’s catchment population has increased from 650,000 in 2018 to 800,000 in 2024 and is projected to reach one million by 2030 – one of the fastest rates of growth in the country. Alongside this expansion, the hospital faces rising demand linked to an ageing population and greater complexity of care needs, particularly in chronic disease management and older person services.

In response, TUH intends to expand bed capacity, develop more step-down care options, and remodel facilities under a strategic campus development plan.

The strategy also includes the plans for the creation of a new clinical research facility, digital upgrades such as real-time patient flow dashboards, and stronger collaboration with GPs and community teams to shift appropriate care closer to home.