The FSHS which is responsible for providing health care for higher education students has decided on cost savings to balance its operations and finances. On 27 February 2024, the FSHS’s Board of Trustees approved this year’s budget and cost savings to cover the funding gap. The funding for this year is not sufficient to carry out the planned activities. The services required by the law must be provided despite savings.
The FSHS will receive 89.9 million euros of funding for its activities in 2024. The amount applied from Kela was 98.4 million euros. In the application the FSHS took into account the growing number of students and the consequent need for more staff, but due to lack of funding recruitment is impossible. The budget deficit will anyway be 4.1 million euros.
“The current funding gap is mainly due to the exceptionally high annual operating costs due to the inflation, and the funding has not kept up with the growing number of students. The basic funding is not enough to develop services either, and the FSHS has applied for additional state funding every year, says Tuomo Yli-Huttula”, the Chairperson of the FSHS’s Board of Trustees.
With the cost savings the FSHS is trying to balance its finances. To have savings, the FSHS will cut down on planned investments, outsources services, procurement, as well as administrative costs. The FSHS will also appeal to the landlords of its premises to have a rent reduction.
“We will monitor the effectiveness of our cost savings over the spring. If they’re not enough to balance the finances and no additional state funding or rent reduction is granted, we must decide on new savings”, Yli-Huttula says.
Currently, the FSHS provides services for 290,000 higher education students. The number increased by about 13,600 students during the past year. The FSHS’s operating costs have also increased due to salary raises and the healthcare sector’s recruitment difficulties.
“In recent years, the FSHS has undergone several updates, such as the nationwide digital service improvement. Digital services have ensured equal access to services nationwide, and 70% of all services are already carried out digitally”, Yli-Huttula says.
77% of the FSHS student health services are state funded and the remaining 23% is covered with the fees paid by students to Kela. Kela organises the services. The FSHS produces its services mainly with state funding – there are no other sources of income or assets.
More information for media:
Tuomo Yli-Huttula, Chairperson of the FSHS Board of Trustees, +358-40-652 9118, tuomo.yli-huttula(at)finanssiala.fi
Katariina Poskiparta, Managing Director of the FSHS, +358-46-710 1101, katariina.poskipart(at)yths.fi