Organisational reform was a key framework for change proposed in the national health strategy with the aim of providing a responsive, adaptable health system, which meets the needs of the population effectively and at affordable cost. To this end action 114 of the strategy provided that an independent audit of the structures and functions of the Irish health system would be carried out. Prospectus Strategy Consultants were commissioned to carry out the audit in 2002.
In his budget statement in December 2001 my colleague, the Minister for Finance, Deputy McCreevy, indicated that a commission would be established to examine, evaluate and make recommendations on the relevant financial systems, practices and procedures throughout the health services. In April 2002 the Commission on Financial Management and Control Systems in the Health Service was established. Both reports were published on 18 June and both concluded that the system was highly fragmented with overlap and uncertainty in terms of who was responsible for services delivered. This fragmentation means the system is increasingly hard to manage as a national service.
The Government made key decisions relating to reform of the health service. The key elements of the programme include a major rationalisation of existing health service agencies to reduce fragmentation, including the abolition of the existing health board and authority structures; the reorganisation of the Department of Health and Children to ensure improved policy development and oversight; the establishment of a health services executive which will be the first ever body charged with managing the health service as a single national entity, the executive of which will be organised on the basis of three core divisions, a national hospitals office, a primary, community and continuing care directorate and a national shared services centre; the establishment of a health information and quality authority; the modernisation of supporting processes; and the strengthening of governance and accountability across the system. In an earlier reply I detailed the steps that I have taken on the implementation of these reforms.
The Secretary General and I briefed every senior manager of every agency in the system in the days after the Government's decision. More than 20,000 staff were directly engaged over the summer months with the Office of Health Management in a very detailed consultation exercise.
Additional InformationThe draft report of the OHM is currently with the Department and will be made public shortly. Overall co-ordination of the change programme is supported by a project office led at assistant secretary level, which reports to the Secretary General of the Department. Output to date from the project office includes a draft project plan for the reform programme, identifying manageable phases of implementation, and establishment of 13 action projects to advance specific elements of the programme by end year.
The next steps will involve the appointment of a national steering committee to oversee the implementation process and the establishment of a board for the interim health service executive. I am considering possible nominees for both bodies at the moment. I intend to report back to Government in the coming weeks with proposed appointees, in consultation with the Minister for Finance.
The reforms will require legislation to implement them. Work has commenced on the preparation of this legislation, which will provide the statutory basis for the establishment of the new health service executive and related structures. The new legislation will also incorporate other legal changes required and my aim will be to introduce the necessary legislation next year.
I am satisfied that the preparatory work on which we have been engaged has been undertaken with the appropriate degree of professionalism and urgency. This programme affects every aspect of the health system and everyone working in it – almost 100,000 people. If it is to have lasting impact, particularly for patients and clients, it must be professionally planned and executed.
I am more than satisfied that the planning and initial consultation phase we have just completed will pay dividends in the longer run.