Central Finland welfare area plans €53 million budget cuts and staff reductions

The Central Finland welfare area plans to cut and adjust its budget by €53 million next year. According to the welfare area, savings in the tens of millions will be achieved through staff reductions, “streamlining the organization,” and changing operational models. There is also a risk of being subjected to an evaluation process.

“We unfortunately have to make painful decisions regarding staff reductions,” said welfare area director Jan Tollet. He believes the financial situation will be significantly better next year.

To achieve a positive outcome, the welfare area is focusing on five strategies:

1. **Post-Financing**: A retrospective review of funding will bring an additional €67 million from the government into the welfare area’s budget. Nevertheless, next year’s budget will still have a deficit of €31.6 million, compared to an estimated deficit of €103 million this year. The welfare area aims to balance its budget by 2026, with hopes of a surplus by 2027.

2. **Cutting Management Positions**: The organization will be streamlined by eliminating managerial positions and reducing administration. Ongoing negotiations involve around 250 people and aim to cut 37 leadership roles by 2025. Staff will be reassigned to patient care roles.

3. **Taking Out Loans**: With a continuing budget deficit, essential investments cannot be made without loans. The welfare area will initiate a process to obtain permission for an additional €15 million loan.

4. **Significant Fee Increases**: Similar to other parts of Finland, healthcare fees in Central Finland will rise sharply. A law change approved in early October will lead to a 22.5% increase in primary care fees and up to a 45% increase in specialized care fees.

5. **Rent Increases for Seniors and Disabled Individuals**: The welfare area will standardize rental agreements for seniors, individuals with disabilities, and those in mental health and addiction rehabilitation, resulting in rent increases for 88% of residents. For others, rents may remain the same or decrease slightly, with increases capped at 15% or €100 per month. This matter is still pending review by the regional council.