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Møre og Romsdal healthcare organization projects half a billion deficit for 2025

Wednesday 23rd 2024 on 15:54 in  
Norway
environment, health

The healthcare organization in Møre og Romsdal is facing a projected deficit of half a billion Norwegian Krone for the upcoming year. As a result, they must cut at least 200 million from their budget for 2025, with an additional 300 million attributed to the costs associated with the implementation of the health platform. This reduction won’t be feasible within the next fiscal year alone and will need to be distributed over several years.

The introduction of the health platform’s medical record system has so far cost the region 350 million Krone. The chairman of Helse Møre og Romsdal, Ingve Theodorsen, has expressed his frustration about the lack of support from Helse Midt-Norge in alleviating the organization’s financial struggles. He criticized comments suggesting that their requests for assistance resembled “begging,” emphasizing the clarity of their financial situation.

The administration acknowledges the challenging financial landscape, with CEO Olav Lødemel confirming the pressing need for immediate measures to address the deficit. The organization’s financial director, Randi Myhre, indicated that extensive changes across all clinics will be necessary to reduce costs. The budget discussions ongoing will need to conclude before a board meeting on December 17.

The proposed budget framework for 2024 will be continued into 2025, maintaining operational activity levels while enforcing strict limitations on staffing and expenditure. Additionally, immediate savings initiatives are to be implemented swiftly to avert deeper financial crises, which could include a suspension of services if the current trajectory remains unchanged.

Health Minister Jan Christian Vestre visited Ålesund Hospital, where he reiterated the responsibility of the regional health boards to manage their challenges without immediate additional financial support from the government, underscoring the need for effective governance in the current fiscal environment.

Source 
(via nrk.no)