Hospice faces €12m funding shortfall

There is currently a €12 million shortfall in funding for the proposed Midlands Hospice in Tullamore, it has emerged.

The current project cost of €40m is being assessed by the Health Service Executive (HSE) and Department of Health as part of what is known as a value engineering process to drive down costs.

The figures were provided to Fine Gael TD John Clendennen during a meeting of the Joint Oireachtas Committee on Infrastructure and National Development Plan Delivery on Wednesday.

Deputy Clendennen questioned representatives from the Department of Health and the HSE at the meeting on the delayed delivery of the Midlands Hospice.

Officials confirmed that the value engineering exercise is underway but could not provide a timeline for delivery.

During the exchange, the current cost of the project was confirmed as approximately €40 million and that a value engineering exercise is being undertaken following significant cost escalation, with representatives citing a 30% funding shortfall.

Planning permission was secured in June last for the proposed new 20-bed hospice facility at Arden Lane, Tullamore. It followed a significant controversy over both the location for the project, and the planning approval.

Speaking after the meeting, Deputy Clendennen said: “The people of the Midlands have waited long enough for this hospice. Communities have fundraised, land has been secured and considerable work has already gone into overcoming the obstacles that have faced this project.

“What we need now is a clear delivery plan and a date for construction to begin. Instead, we learned today that a value engineering exercise is underway because of escalating costs, leading to a €12 million shortfall, while the HSE were unable to tell me when we will see a shovel in the ground.

“This is deeply frustrating," he said, stating that it was essential that any funding issues are addressed quickly and transparently rather than becoming another reason for delay.

Speaking at the meeting, Brian O’Connell, Head of Strategic Health Infrastructure and Capital Development at the Department of Health, said the project was “an absolute priority”.

He said it was not unusual during detailed design work for a project of this scale that a value engineering exercise would be carried out to ensure it was deliverable.

Deputy Clendennen also questioned whether changes arising from the value engineering process could result in a requirement to revisit planning permission. HSE representatives indicated that they considered this unlikely and hoped to work within the existing permission.

“Value engineering cannot become another phrase for allowing an essential Midlands healthcare project to drift.

“I fully recognise that major capital projects have to demonstrate value for money but there also has to be accountability for delivery.

“This hospice is not an optional extra for the Midlands. There has been an enormous community effort behind it and people deserve certainty about when construction will commence. It was only earlier this month that the Midlands Palliative Care Alliance was officially launched, reinforcing the collaborative efforts made across the four Midlands counties towards this project.”

Officials are to come back to Deputy Clendennen and the committee with a timeframe for delivery of the project.

“The current value engineering exercise is concerning but as the last region in the country to have a dedicated palliative care facility this must be delivered ASAP,” concluded Clendennen.