- Next Article Finnish Immigration Service overhauls structure to boost efficiency and security
The Hospital District of Helsinki and Uusimaa (HUS) has announced immediate new cost-saving measures, including a hiring freeze, as part of its efforts to address a significant budget shortfall. The decision, effective from June 12, 2024, is aimed at mitigating a budget deviation of 24.1 million euros from the financial target for the first four months of 2024.
Despite a positive result of 14 million euros for January to April, HUS’s expenditure on healthcare services and supplies exceeded the budget by 61.2 million euros.
This discrepancy necessitated additional savings, beyond the 130 million euros already cut from the 2024 budget.
Stringent Measures to Address Financial Strain
HUS CEO Matti Bergendahl emphasized the challenging balance between a tight budget and the increasing demand for specialized healthcare services. “We have a strict financial framework for this year, which does not accommodate the growing demand for specialized healthcare and the legal obligation to provide care. These factors are difficult to reconcile,” Bergendahl stated.
As part of the new cost-saving measures, HUS has approved a hiring freeze for permanent, temporary, and substitute staff until the end of the year. Salary adjustments, job role, and title changes have also been frozen. This decision will be presented to HUS’s personnel committee on June 12.
Long-term Financial Adjustment Plan
Looking ahead, HUS also discussed a long-term financial adjustment plan for 2025-2027, aiming to save at least 225 million euros. The annual savings targets are set at 55 million euros for 2025, 74 million euros for 2026, and 96 million euros for 2027. The goal is to achieve permanent cost reductions.
Concerns Over Patient and Staff Safety
The proposed hiring freeze has raised concerns among healthcare professionals. Silja Paavola, Chair of the Finnish Union of Practical Nurses (SuPer), warned that the freeze could compromise patient and staff safety. “Preventing the replacement of retiring healthcare staff will weaken patient and staff safety, and further strain the already stretched workforce,” Paavola commented. She noted that the measure could exacerbate the existing staff shortage, leading to burnout and attrition among nurses.
Paavola highlighted the essential role of healthcare staff, who are often viewed as an expense rather than a vital re
Source: www.helsinkitimes.fi
