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Thursday, August 5, 2021

HSE reports €370 million loss over PPE

The Health Service Executive has reported a €370 million loss which arose from the purchase of Personal Protective Equipment during the early weeks and months of the Covid-19 pandemic.

It has been considered that the prevailing price being paid last year by the HSE was €310 million more than the current value of the stock.


The HSE is to make provision of €64 million in its accounts for the year arising from the anticipated obsolescence of protective suits which were bought last year.

The protective suits were purchased during a time when more clinically appropriate gowns were not available.

An audit report from KPMG revealed that it spent €920 million on PPE last year compared to its standard €15 million.


PPE stock was valued at €557 million back in December 2020 but following an impairment of 67% on the original cost, the value was revised to €182 million.

In the early stages of Covid-19, the HSE secured a large volume of PPE but was occasionally forced to accept high prices and sometimes higher than normal prices.

A limited benchmarking excessive by the auditors revealed in a report that the HSE paid more for comparable items of PPE than the NHS and the Australian Health Service, with the exception of masks to which the HSE paid 2% less than the Australian Health Service.

According to the report, the HSE on average paid 163% more than the NHS for masks.


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