The Health Service Executive (HSE) has exceeded budgets by nearly €26 million across just ten large-scale infrastructure projects completed since 2020, according to new figures released by the Department of Health.
These capital projects, initially approved at a contract value of €217.1 million, ultimately cost taxpayers €242.95 million—representing a significant overspend during a period when health budget management has been under intense scrutiny.
Nine out of the ten projects exceeded their initial budgets, with three surpassing their projected costs by more than 15%. The construction of a ward block at Dublin’s Mater Hospital stands out among these overruns, costing €68.3 million compared to its approved budget of €58.5 million when first approved in November 2020.
Another notable example is the development of a 50-bed community nursing unit replacing St Conlon’s Nursing Home in Nenagh, Tipperary, which was budgeted at €14.8 million in February 2021 but ultimately cost €18.1 million—a 22% increase.
Only one project came in under budget: a 60-bed extension at St Mary’s community nursing unit in Gurranabraher, Cork. Initially reported as €5 million over budget upon completion in late 2022, revised figures showed it actually finished €200,000 under projections, costing €20.7 million.
Social Democrats TD Aidan Farrelly, who obtained the figures through a parliamentary question, expressed disappointment at the consistent overruns. “It would be interesting to review the paper trail for the schedule of projects provided in the context of award values and final values given the HSE board signed off on the spending,” he said.
These budget overruns follow a challenging period for health service finances. In October 2023, the Department of Public Expenditure underfunded the health budget by €1.3 billion in response to years of overspending, resulting in a recruitment moratorium that left hundreds of positions unfilled for ten months.
The HSE defended the overruns, stating that the average increase across the ten projects was “within 15%” and therefore “within the normal contingency expectation for projects of this scale and complexity.” A spokesperson noted that “the majority of these contracts were carried out during a period of hyperinflation,” adding that when excluding €7.5 million in ex gratia payments made to contractors to counter inflation, “the increases are within 11% of the original contract award.”