The HSE has warned that it is facing a severe financial crisis, with latest figures showing its deficit has trebled in only two months.

The deficit of €80.4 million for the end of March, revealed in the HSE's latest performance report, is also three times what it was at the same time last year (€26.7 million). The shortfall was €24.5 million at the end of January this year.

The acute hospital sector is reporting a deficit of €62.9 million at the end of March, which makes up 76% of the overall HSE deficit so far this year.

The figures were revealed after the HSE's head of acute hospitals, Tony O'Connell, recently called on hospitals to do more to rein in their spending levels, and as Health Minister James Reilly comes under increasing pressure for his handling of the health service budgetary situation.

The Minister has warned that around  €100 million of the projected savings in the health service will not be achieved this year.

However, the HSE's report shows that some of the Minister's initiatives are not generated targeted savings.

The HSE's financial report shows that hospitals' financial problems have been exacerbated by a smaller than projected intake from new hospital charges, introduced by Minister Reilly on January 1.

Under new legislation, public hospitals can now charge all private patients for accommodation, even if they are occupying a public bed. However, income under this heading is €10 million less than expected for the first three months of this year, the report shows.

The HSE's financial report also warns that projected savings under a number of other headings, including pay, the introduction of a 'nurse bank', the graduate nurse scheme, and planned savings in the medical card scheme, may not fully materialise and are not fully within the control of the HSE.

The HSE says it is committed to maximising delivery on the €290 million Haddington Road Agreement pay savings target 'given that the agreement represents an essential tool for the HSE to safely reduce pay costs without impacting services'.

However, the HSE report admits that the maximum savings that can be achieved under this heading would be €212 million.

It also says the scale of the medical card scheme savings target for 2014 of €294 million is 'a very significant challenge' given that it follows the €353 million in savings targeted for 2013.

The medical card service savings measures include medical care probity targets, the report says. 'Medical card probity' involves reviewing eligibility and in some cases taking medical cards off people.

The scale of the risk and challenge in achieving financial breakeven by year end is extremely significant, the HSE report says.

The HSE report notes that by the end of this year, health spending will have been cut by 27% (€4 billion) since 2008.