Dáil Éireann debate -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Estimates Report.

Billy Timmins

Question:

363 Mr. Timmins asked the Minister for Health and Children the measures as outlined in the Review of Estimates Report which have been implemented by his Department to date; the measures he proposes to implement; and if he will make a statement on the matter. [4480/03]

Minister for Health and Children (Mr. Martin):

The main financial measures recommended for the Department of Health and Children in the Review of Estimates Report were: savings of €100 million on capital expenditure; administrative budget efficiency dividend of €0.7 million; increase bed charges by 10%, in order to generate savings of €15 million; health boards to identify efficiency savings of €30 million; increase threshold for the drugs payment scheme from €65 to €80, in order to generate savings of €29 million; and savings of €10 million on developmental, consultative, supervisory and advisory bodies. These measures were incorporated into the provision for the Department of Health and Children as published in the 2003 Abridged Estimates Volume.

My Department has implemented the measures for capital expenditure, administrative budget and increased bed charges as set out above. The remaining recommendations were implemented in the following manner: health boards' efficiency savings were increased to €35 million and the required savings for developmental, consultative, supervisory and advisory bodies were reduced to €5 million.

The drugs payment scheme threshold has been increased from €65 to €70 with effect from 1 January 2003 and, together with approximately €2 million savings to be generated by the substitution of generic drugs for proprietary drugs, will result in overall savings of €9.2 million.

The balance of the recommended savings is being generated by the following measures: some €2 million to be generated as a result of the introduction of a more rigorous regime leading to the elimination-minimising of invalid-illegible claims paid to community pharmacy contractors; €5 million to be generated by discontinuing advance payments to community pharmacy contractors in respect of stock purchased from suppliers; €5 million to be generated by further increasing private bed charges by 5%; and €7.8 million generated from within the overall 2003 Estimate for the Department of Health and Children. In addition, the committee commented on two areas: Control of Health Service Employment – my Department has strengthened employment control measures in line with the review committee's recommendations.

Fundamental Structural Changes – the committee made reference in its report to the need for fundamental structural changes to promote greater efficiency in delivering services; in particular it indicated that it had serious doubts about the efficacy of the existing health board structures. The committee referred to the work of the Commission on Financial Management and Control, established by the Minister for Finance, the national task force on medical structures, and the audit of structures and functions. It considered that this work needed to be brought to a conclusion and implemented. I understand that these reports are nearing completion and should be submitted to Government in the near future.