Welfare regions in Finland discuss financial issues with Ministry of Finance

Several welfare regions in Finland have been invited for discussions with the Ministry of Finance regarding their financial issues. These regions have recently submitted comments on a draft project plan for the welfare region transition support initiative.

Jari Jokela, the director of the Lapland welfare area (Lapha), expressed that such discussions would be very beneficial for Lapha. He emphasized that the intention is solely to engage in dialogue and that Lapha is not facing any form of “disciplinary action” or being placed in a “remedial class.”

According to the ministry, these discussions are, at least for now, voluntary for the regions and do not entail mandatory oversight or the initial phase of a welfare evaluation process. Jokela stated, “We hope for genuine dialogue in which the welfare regions can also guide the state, rather than it being one-sided.”

Jokela warned that the worst-case scenario would involve the ministry initiating a burdensome bureaucratic process simply to show they are addressing the issues. This concern is heightened by the fact that the transition support project is scheduled to conclude in March 2025, just before the regional elections.

The current situation is complicated by the operational model of welfare regions, which function as state agents receiving funding for state-defined activities. This arrangement limits their ability to make independent decisions, such as the number of operational hospitals and staffing levels at various times. Jokela criticized this as “significant micromanagement” and called for a better balance between funding and objectives, stressing that welfare regions are not to blame for the state’s failure to provide adequate funding for their mandated tasks.