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Dáil Éireann debate -
Wednesday, 4 Nov 1992

Vol. 424 No. 9

Written Answers. - Health Board Finances.

Pádraic McCormack

Question:

77 Mr. McCormack asked the Minister for Health the estimated loss of income of each health board arising from the capping of income by the Voluntary Health Insurance Board for in-patients in this financial year and the following financial year; and if he will make good the loss involved to each health board.

My Department has negotiated with the Voluntary Health Insurance Board a total payment of £40 million to health agencies in respect of the year ending February 1993. This represents an increase of about 17 per cent over the previous year. It is not possible at this point to forecast what loss of income, if any, will arise for any health board under the arrangement, having regard to changes in eligibility and the consequent redesignation of beds. My Department will be discussing the income situation with the VHI in the near future and those discussions will include consideration of appropriate income budgets for the year ending February 1994. The Deputy will appreciate that the level of payments to public and private hospitals must take account of the need to ensure the continuing financial viability of the VHI. It is necessary to agree arrangements which do not threaten the integrity of the present balance between public and private funding of health care. It is also necessary to ensure that the VHI meet EC future requirements on minimum solvency margins.

Pádraic McCormack

Question:

78 Mr. McCormack asked the Minister for Health if he will have arrangements made to have the accounts of the health boards audited by private firms of auditors, recruited on an open tender basis, in order to bring these audits up to date.

Section 29 (1) of the Health Act, 1970, provides that the Abstracts of the Accounts of a Health Board be certified by a Local Government Auditor, appointed by the Minister for Healh after consultation with the Minister for the Environment. Consequently, I have no authority to do as the Deputy suggests.

Pádraic McCormack

Question:

79 Mr. McCormack asked the Minister for Health the amount of excess expenditure incurred by each health board and voluntary hospital for each of the years ending on 31 December 1987 to 1991.

It has not been possible in the time available to collate all the information requested by the Deputy. Furthermore, the audited accounts for all agencies in respect of 1990 and 1991 are not yet available.

I will communicate with the Deputy as soon as possible.

Pádraic McCormack

Question:

80 Mr. McCormack asked the Minister for Health the value of cheques withheld from suppliers due to cash shortages by each health board and voluntary hospital as at 30 September 1992; and the proposals, if any, he has to alleviate the situation.

The value of payment orders held by the health boards as at 30 September 1992 is as follows:

Health Board

£m

Eastern

12.4

Midland

2.7

Mid-Western

2.3

North-Eastern

1.6

North-Western

3.0

South-Eastern

4.2

Southern

8.5

Western

1.5

Total

36.2

It is not possible to give the Deputy figures in relation to the voluntary hospitals as it is not the practice of most of them to draw cheques until they are in a position to make payments to creditors.
As my predecessor indicated on a number of occasions the timing of the issue of creditors payments is a matter for each individual agency to decide. It should be noted that in considering the above figures the amount outstanding to creditors on any particular date is related to the timing of payments rather than an indication of its overall financial position. The cash position of the boards and voluntary hospitals is constantly monitored by my Department. The Deputy will be aware that, as a result of service pressures, agencies have incurred expenditure, over a number of years, in excess of their allocations and that this has given rise to considerable cash difficulties. This problem is being addressed by my Department and the Department of Finance at present and I am hopeful that I will be in a position, in due course, to bring forward a package of measures to ensure that there are no further excesses on approved budgets and that the current cash difficulties are resolved on a carefully planned and targeted basis.

Pádraic McCormack

Question:

81 Mr. McCormack asked the Minister for Health the amounts per year of health grants due to each health board and voluntary hospital as at 30 September 1992; the date these arrears will be paid; and if he will make a statement on the matter.

The level of health grant paid to each health board and voluntary hospital is based on cash profiles agreed with my Department, at the beginning of the year, in line with approved expenditure levels. Cash is issued to agencies on a weekly basis in line with the cash profile, as adjusted from time to time in respect of agreed additions to non-capital allocations. My officials are currently in discussions with agencies to agree the final adjustments to their allocations and cash for 1992.

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