Redundancies at Hospice as charity faces 'increasing' financial difficulties

Hospice Isle of Man has confirmed a number of redundancies and service changes amidst what it describes as 'increasingly unsustainable' financial difficulties.

The organisation, which provides end-of-life care to hundreds of patients on the Island each year, says it's had to make some 'very difficult decisions' to reduce costs as it continually records a deficit.

In a statement, Hospice says: "Unfortunately, the financial reality we face is increasingly unsustainable. Despite our best efforts, the combination of increasing costs, our aging population and the reality of Government funding accounting for just 24% of our total income (compared to 44% in Jersey and an average of 36% in the UK), has led to Hospice operating at a deficit for the past six years." 

It adds: "This is not a position we can maintain without risking the long-term future of the charity".

As of its latest estimates, Hospice has told Manx Radio that it requires £7.5 million to meet its annual running costs. 

In the latest Budget it was allocated £1.8 million by Government, significantly lower than the £2.45 million it had requested from Manx Care's budget to help cover its core services.

That leaves the charity relying on fundraisers to bring in the remaining £5.7 million each year. 

Redundancies and pending change to services

Hospice operates with a workforce of around 150 individuals who have been offered the chance to take voluntary redundancy.

CEO Fiona Hatton told Manx Radio that a meeting was held this morning during which staff were informed.

"We don't have a set figure of the number of roles, or the number of people, that we need to make redundant." - Fiona Hatton

Manx Radio has been speaking with Hospice CEO Fiona Hatton:

The charity says: "As a result [of funding issues], we have had to make the very difficult decision to reduce our cost base, refocus our services and stop filling gaps in the wider healthcare system. This means there will be changes to some of our services and redundancies for some of our employees. 

"Throughout this process, we will prioritise protecting our core services, our in-patient unit, Hospice at Home and Rebecca House Children’s Hospice", it adds.

On these measures, Hospice says: "We fully recognise the impact this will have on our dedicated staff, volunteers, and the wider community we serve. These changes are being made to ensure we can continue to provide compassionate care, dignity, and clinical excellence for those in the final weeks of life, now and into the future."

Fair Funding Campaign

Whilst continuing to collaborate with the Isle of Man Government and Manx Care, Hospice has announced it will be launching a campaign calling for what it describes as an 'equitable funding model'.

The charity is calling for members of the Island's community to show it some support when it starts its #FairFundingHospiceIOM drive in May.

Hospice Isle of Man says: "This is a sad moment for Hospice care on our island, but also a necessary step to protect Hospice care for future generations. We are committed to supporting our staff through this change, and our patients for years to come."

Response from Manx Care and the Department of Health and Social Care:

Patients and families across the Island can be reassured they will continue to receive the hospice care they rely on. 

Following today’s announcement, the Department of Health and Social Care and Manx Care are working closely with Hospice Isle of Man and across government to ensure that care continues with the compassion and dignity people deserve.

The Department of Health and Social Care (DHSC) and Manx Care recognise the financial pressures facing Hospice and support its focus on core palliative and end-of-life care. As part of this, some services including physiotherapy, occupational therapy, psychological therapies and lymphoedema services will transition into Manx Care and planning is already underway to make that transition safe and smooth for patients.

To support Hospice during this period, Manx Care is working with Hospice to protect and maintain core services, including Hospice at Home and specialist nursing care.

A full review of commissioning arrangements for palliative and end-of-life care in line with the Mandate to Manx Care 2026-27 will be delivered by September 2026. This will establish the level of government funding needed to sustain core services and ensure these vital services are sustainable for the future.

DHSC and Manx Care remain committed to working in partnership with Hospice Isle of Man to ensure stable, high-quality care for the Island's community.