Regional leaders question benefits of merging welfare regions

Satakunta may be unable to continue as an independent welfare services region, its regional board chair Heidi Viljanen said, while Niina Alho, chair of the neighbouring Southwest Finland welfare services region, sees few benefits in mergers, Yle reports.

Satakunta must make adjustments worth 75 million euros by the end of the decade. Demand for services has grown more than expected.

Viljanen said she remained hopeful but acknowledged that the region might eventually have to give up its independence.

“If things continue to look like this, there may come a point when we have to throw up our hands,” she said.

Viljanen stressed that a merger would be a last resort.

Alho said merging Satakunta with Southwest Finland would not necessarily produce significant savings.

“Two poor ones do not make one rich. It would not bring major financial savings, for example through administration. Tens of thousands of employees would also have to be managed,” Alho said.

Southwest Finland and Satakunta already cooperate extensively. Southwest Finland is the country’s second-largest welfare services region by population and staff, with nearly 500,000 residents and about 24,000 employees. Satakunta is less than half that size.

Alho said the idea of losing a welfare services region’s independence was not unfamiliar to her, given the regions’ tight funding. However, she said it was difficult to see the benefits of merging regions that vary greatly in size.

“We estimate that we will record a surplus of more than 90 million euros this year. Even so, we are in an unlawful position under the funding law. This is difficult to explain to people,” Alho said.

Satakunta is also expected to record a surplus, but its 2.8 million euros will not be enough. The use of services, particularly at university hospitals, in elderly care and in child protection, has increased more than expected.

The number of welfare services regions and their funding are likely to become prominent political issues in next spring’s parliamentary election campaign.

“Whatever you want to call it, Finns need to understand how welfare services are organised and what they actually cost. Welfare services are a basic pillar of society,” Alho said.