Dáil Éireann debate -
Tuesday, 24 Jun 2003

Vol. 569 No. 3

Written Answers. - Health Service Reform.

Bernard J. Durkan

Question:

105 Mr. Durkan asked the Minister for Health and Children if he has undertaken a cost benefit analysis in respect of his recently announced health reform proposals; and if he will make a statement on the matter. [17647/03]

John Gormley

Question:

150 Mr. Gormley asked the Minister for Health and Children the amount of money which can be saved for the Exchequer through the proposed reform of the health boards; and if he will make a statement on the matter. [17619/03]

Minister for Health and Children (Mr. Martin)

I propose to take Questions Nos. 105 and 150 together.

As part of their brief, Prospectus Strategy Consultants were asked to assess potential financial implications of the implementation of the new consolidated structure.

At the outset, Prospectus stated that it is difficult to accurately predict the true financial impact of programmes of this scale. In addition, the limi tations of the available financial data made it difficult to develop a realistic estimate of costs or benefits in relation to the major components of reform – in some cases data was not readily available or not directly comparable. This information deficit is reflected in the analysis completed by the Brennan commission also. However, the Prospectus team outlined the likely benefit and cost contributors associated with a programme such as this.

For example, improvements in management focus, role clarity and team-working should contribute to increased productivity from the existing labour base in people-based services; shared service efficiencies should create significant savings and productivity improvements across functions such as general accounting, accounts payable, human resource administration and purchasing and receivables; the reduction in health board overheads should free up resources which could be utilised to meet demand for front-line services; and sales of surplus assets, in particular property assets which might no longer be required could be another source of cost saving. These benefits will have to be balanced against the potential costs associated with establishing some aspects of the new infrastructure.

It has been agreed by Government, that the costs associated with the reform process in 2003 will be met from within existing allocations. I will be discussing funding for 2004 and subsequent years with my colleague, the Minister, Deputy McCreevy, in the context of the 2004 Estimates.