Drumcar services in Louth to be transferred to HSE control

Saint John of God Community Services (SJOGCS), has announced it is to transfer all service provision to the Health Service Executive (HSE) later this year including St John of God services in St Mary’s Drumcar.

The decision follows the failure to conclude a funding agreement with the HSE.

Saint John of God says the decision is aimed at securing the future financial sustainability of the organisation.

It is intended that the transition process will be completed by 15 August 2024 with members of management speaking with staff members and families of service users at its various locations around the country last Friday informing them of the decision.

The Drumcar service provides residential and day services to adults with intellectual disabilities in the region although recent years have seen a transition of some 60 people from the campus based residential services into supported community housing.

St John of God said it had ongoing engagement on its funding challenges with the HSE since 2020 but in recent months communicated its serious concerns regarding its accumulated deficit and what it said was “the sustained lack of adequate funding” to allow for its continued financial and operational sustainability.

A spokesperson for the group said:

“The annual funding allocation from the HSE to CS has been insufficient for over a decade. This has negatively impacted the ability to provide services consistent with good practice and respectful of the human rights of those who avail of the services.

“Since 2020, CS and the HSE have engaged jointly in a “Sustainability Impact Assessment” process. The objective of the process was to establish the level of funding required to provide services to the required standard.

“Unfortunately, the HSE has not committed to the core additional funding required to sustain service provision nor addressed the accumulated deficit.”

In more recent weeks, the matter was the subject of engagement with the HSE, the Department Children, Equality, Disability and Integration and the Department of Health.

Last week’s decision to transfer has been formally ratified by the Board of St John of God Community Services clg and the Board of Saint John of God Hospitaller Services Group clg.

Chief Executive of Saint John of God Community Services, Clare Dempsey, said it was a very sad day for the Service -

“We are confirming with profound regret and deep disappointment that due to the failure of an extensive engagement process with the HSE, we have initiated the plan to transfer responsibility for service provision to the HSE.

“Today represents the saddest day in the history of our long-established Service, which has been in operation since the 1930’s.

"I know it is deeply disappointing for those we support, our staff and the many thousands of families around the country with whom we hold such strong ties and bonds with over so many years.

“We will do all in our power to conduct a smooth transfer of service to HSE and will seek to minimise the impact on the eight thousand people availing of our services, as well as our three thousand valued members of staff.”

The organisation say efforts will be made to ensure an orderly transfer of services, with a commitment to minimise disruption on those availing of the services. Representatives from St John of God Services will collaborate with personnel nominated by the HSE to prepare and implement a plan to transfer services.

It is expected that staff will transition to the employment of the HSE in accordance with TUPE legislation.

A transfer of undertakings (also known as TUPE) is generally when employees are moved to a new employer as part of a legal merger or the sale of a business.

In a statement released to the Democrat the HSE said it was “shocked and disappointed” at the announcement by Saint John of God Community Services (SJOGCS) and “the manner in which they have chosen to communicate that to families.”

It continued: “We have worked with them over the last number of years on funding-related matters. SJOGCS’s services have had an in-year break even each year for several years, with the help of substantial HSE support, and there is no reason to believe that 2024 will be any different.

“The HSE is open to further meetings with SJOGCS to discuss the resolution of its financial position, remembering that we have to consider all of those in need of the services of the many service providers in the disability sector.

“But to emphasise again it has sufficient funding and assurances to continue to provide its services and to pay bills as they fall due. As a Section 38 Organisation, they are afforded all of the protections associated with that status, and their staff are paid and pension treated as public servants.”

They said it was their priority to continue the engagements with SJOGCS and with the support of the Department of Children Equality Disability Integration and Youth and the Department of Health to resolve historical deficit issues.

They further claimed that as recently as February 15th, the HSE CEO set out an extensive financial package to the SJOG stating that “there is no reason to transfer service or indeed cause the anxiety to families and the public that has been in the public domain today.”

The HSE said that the Department of Children, Equality, Disability, Integration and Youth will continue work to address the longer task of determining the overall liabilities within the disability sector.

The Department confirmed again that the HSE will continue to provide the necessary liquidity to ensure that SJOGCS can address cash issues while this process is underway.

Commenting on the announcement, HSE CEO Bernard Gloster said:

“If despite substantial assistance in a €200 million grant to SJOG annually, they remain insistent on withdrawing from service provision then we will require them to do so in an orderly and appropriate fashion having regard to the rights of service users and their staff.

“I do not accept it is appropriate or responsible for a declaration of handover by August this year. The HSE will consider carefully its options if this eventuality arises.

“For now, we urge SJOG to remove the anxiety for families and continue their engagement safe in the knowledge they have more than enough money and assurance to avoid such an immediate action.”