HSE Governance Faces ‘Defining Collapse’ with Up to €7M Loss on Medical Devices, Says Chief

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HSE Governance Faces ‘Defining Collapse’ with Up to €7M Loss on Medical Devices, Says Chief

The Health Service Executive (HSE) has faced significant losses of between €5 million and €7 million due to corporate governance issues involving a medical devices company. Bernard Gloster, HSE’s Chief Executive, highlighted these concerns while addressing the Dáil Public Accounts Committee.

Corporate Governance Failures Highlighted

During his testimony, Gloster pointed out that failures in corporate governance led to inadequate checks on invoices for medical devices. Payments were authorized without confirming whether the goods were actually received. Many of the individuals responsible for these oversights have since left the organization voluntarily, complicating any investigation.

Details of the Medical Devices Controversy

The controversy arose around short-life sensors intended for monitoring patients with respiratory illnesses, which the HSE agreed to purchase during the Covid-19 pandemic.

  • The HSE authorized payments for an unprocured product.
  • A double payment of €723,000 was made without proper verification of stock received.
  • Estimates indicate that between 91,000 and 131,000 sensors may not have been delivered.

Gloster criticized the gap in communication and oversight, stating, “The gap between those who were signing the invoices and the actual utilization was absolutely inexplicable.” He emphasized the need for vigilance, particularly in light of relaxed controls during the pandemic.

Impact on Health Service Operations

Furthermore, the HSE’s administrative practices are now under scrutiny. Gloster indicated a shift in policy regarding voluntary health agencies funded by the State. There is a push to standardize IT, HR, and laboratory systems across these agencies, which has faced resistance.

Challenges in Financial Management

Voluntary hospitals run by independent boards have expressed concerns about a universal financial management system proposed by the HSE. They seek a separate legal agreement for implementation, a stance Gloster rejects. He believes that the relationship between the State and these entities is misaligned, particularly regarding autonomy and funding responsibilities.

Gloster asserted that if the State funds these organizations completely, it has the right to enforce systems and controls on expenditures, emphasizing the need for improved governance in Ireland’s healthcare system.