RTÉ News has learned that the Health Minister has asked Tallaght Hospital to implement radical governance reforms, which could mean the surrender of its Charter and the appointment of a new Board, as part of a plan to deal with its spiralling budget deficit.
The Hospital Board has approved a financial recovery plan to 2012 and is seeking support for it from the Minister and the HSE.
The hospital has a current budget deficit of over €11m but a total legacy deficit of around €35m.
The hospital's recently appointed CEO, Eilish Hardiman and the chairperson of the hospital Board, Archdeacon David Pierpoint met with the minister late last week to discuss the crisis.
In a statement this evening, Ms Hardiman said that the primary elements of the plan were operational efficiencies, expenditure reduction and controls, maximising income and collaboration with other hospitals.
she said the Hospital would continue to work closely with the HSE and the Department of Health to monitor expenditure.
The recovery plan includes scaled back funding and major cutbacks in order to stay within budget up to the end of next year.
Tallaght Hospital was established in 1996 under a parliamentary Charter, which protects its independence as a public voluntary teaching hospital.
It was allocated €174m in HSE funding this year.
Board to respond to minister after meeting
In a statement, Tallaght Hospital said its board has recommended a fundamental change to its governance structure, which includes replacing its parliamentary charter with a new governance framework.
The hospital says its voluntary status will be retained.
The three constituent foundations of the hospital are considering the recommendation and will report back to the hospital board at its meeting tomorrow.
The board will give its response to the minister after that meeting.
Controversial
The opening of Tallaght in 1998 saw the amalgamation of three hospitals - the Adelaide, Meath and National Children's Hospital - with particular protection for the Protestant ethos of the Adelaide.
While none of the foundations attached to the three hospitals are opposed to better governance, any change which would see it surrender its independent charter to HSE or private management control would be very controversial.
The Hospital Board is due to meet tomorrow evening and its chairperson, Archdeacon David Pierpoint is expected to meet with Mr Reilly tomorrow.
Since it opened, the hospital has faced major financial pressures and has seen the departure of several chief executives.
Recently, in response to criticism of poor governance standards, it introduced a slimmed down expert Board and other measures.
It has also been embroiled in controversy over 50,000 unread x-rays, unprocessed GP referral letters, a potential breach of confidentiality due to the outsourcing of the typing of patient medical reports and a statutory inquiry is underway into safety at its emergency department.
