HSE to return money to Offaly Hospice, Council hears

The HSE has agreed to repay €312,000 to the Offaly Hospice Foundation, a meeting of Offaly County Council has heard.

Elected representatives in attendance at the May meeting of the local authority in Kilcormac were informed that a resolution to the ongoing issue will have a "positive outcome".

The issue had previously been raised at the April meeting of the local authority following a formal response to the Councillors from the HSE which confirmed that no decision had yet been made regarding the refund of €312,000 in costs incurred by the charity.

In its written reply, issued after a council motion calling for the refund, the HSE acknowledged the “significant efforts” of Offaly Hospice Foundation in progressing plans for a hospice facility in Tullamore.

This included fundraising activities and expenditure on design proposals for an earlier proposed site at the Midlands Regional Hospital.

The HSE confirmed that a meeting took place with representatives of the Foundation on March 12, 2026, during which the charity outlined its engagement with the executive and detailed the costs incurred.

Independent Cllr Fergus McDonnell said the meeting with HSE representatives was "robust" with a "positive results" for all parties involved.

"The HSE have given a commitment to reimburse the €312,000 and I fully support the hospice in getting all the money that is owed to them," Cllr McDonnell said.

Fianna Fáil Cllr Peter Ormond said he was "fully supportive" of Cllr McDonnell's stance on the issue and there was "no split" amongst elected representatives, all of whom wish to see the money returned to the Offaly Hospice.

"We are all fully supportive of having this substantial amount of money returned to Offaly Hospice. The hospice can then reinvest this money in healthcare for the good of its patients," Cllr Ormond said.

Speaking to the Offaly Independent on Tuesday, Council Cathaoirleach John Leahy acknowledged that while no money had yet been repaid to the Offaly Hospice, "the issue will be resolved".

The controversy centred on expenditure incurred by Offaly Hospice Foundation on plans for the original hospital site in Tullamore, which had been offered by the HSE for development before the project direction changed.

Planning permission for the specialist Level 3 Midlands Hospice development on Arden Lane, Tullamore, was granted by the council at the beginning of the year, and the Government has committed €24 million in capital funding towards the development.