I thank the committee for accepting our request to present on medical devices, reducing costs and improving the quality of life for Irish patients. We appreciate that the committee has a very full agenda and its meeting with us is especially welcome. The Irish Medical and Surgical Trade Association, IMSTA, represents companies that provide medical devices to all sections of the Irish health care system. We do not represent pharmaceutical companies. Although IMSTA was formed in 1982, an executive was only put in place in 2008. We are in a new phase in our development and, as such, we are only now reaching out to engage with key stakeholders.
Our wide range of products is used in every part of the health care system and include, for example, protective gloves for surgery, beds for intensive care units, stents and remote pacemaker monitoring systems, among many thousands of devices supplied every day. We wish to brief the committee on the contribution that the medical device supply industry makes to the Irish health care system and how we can assist and support the delivery of more cost-effective health care and reduce the pressure on accident and emergency units and in-patient care throughout the country.
Every day of the week our products help patients through earlier diagnosis, less invasive procedures and more effective treatments. I ask members to take a moment to consider what our hospitals would be like if we did not have defibrillators, pacemakers, insulin pumps, surgical gloves or CT and MRI scanning equipment. More patients could die prematurely, in-patient stays could be weeks rather than days and total health care costs would be even greater.
At present approximately 2,000 representatives and support personnel from our companies liaise with supporting clinicians and nurses in every hospital in the country. We also liaise with the HSE, hospitals and health and community care centres. The flexibility of our member companies ensures that cash-stretched hospitals continue to get vital medical devices. We have a deep knowledge of the health care system in Ireland and access to the experience and knowledge of our colleagues working throughout the world. Therefore, we find it extremely frustrating when the procurement arm of the HSE and the Department of Health and Children make vital budget planning decisions without involving the industry.
As a result we are faced with ultimatums to freeze prices, reductions in the number of medical devices contracted for, cancellation of capital contracts already awarded and even a recent call for a 10% price reduction on all business transacted with hospitals. While appreciating the constraints imposed by the economic downturn, these ultimatums are very frustrating for us, especially when one considers that the devices we supply and provide cover for 24 hours a day seven days a week, reduce procedure times, improve healing rates, prevent health care associated infections and in all cases reduce the length of stay in hospital.
By working with the HSE and the Department of Health and Children we can share our international experience and find ways to ensure patients get the care they are entitled to within the constraints of the current economic climate. We are baffled that the health services would opt to cut back on purchasing medical technology. Such actions do not contribute to cost reductions; they effectively increase the costs and let me explain. If one stops purchasing insulin pumps for those with type 1 diabetes they will require increased monitoring, more in-patient care and increased demands on accident and emergency facilities.
Advances in both CT and MRI scanning technologies have provided practitioners with minute diagnostic detail which can result in minimally invasive surgery being employed reducing the risk to the patient and the length of his or her stay in hospital and ultimately it reduces the cost to the health authority. Prevention is better than cure and costs much less in the long run. We believe that if the HSE and the Department of Health and Children include our industry early in the planning process we can contribute to improving services and reducing costs.
The other issue we wish to raise with the committee is the Government's commitment to paying invoices received by Departments and State agencies within the 45-day timeframe as set out in the Prompt Payment of Accounts Act 1997. Medical device companies contribute billions of euro to the Irish economy every year and medical devices account for €6.2 billion in exports. More than 28,000 people are employed by medical device companies in Ireland. Our industry provides sustainable long-term high value-added employment. However, our industry continues to struggle to receive payment for products supplied within the legal timeframe. IMSTA estimates that the medical device supply industry alone is owed more than €25 million for invoices over 45 days. We welcome the Taoiseach's commitment to ensure that all Government invoices will be paid within 15 days and we ask that this is implemented as soon as possible. Any further delays on payment could have a significant impact on the sustainability of jobs in the industry.
Irish people are working on the research, development, manufacturing and marketing of the latest technology in medical devices. This new technology is available in health care systems throughout the world. We believe that our own population should benefit from early access to the best medical advances available. Modern treatments and medical devices are crucial to the success of public health service providers in Ireland. The procurement process must be focused on delivering the best value for money in terms of patient outcomes and total cost of care. This approach will reduce health care costs and have a positive impact on Government finances.
The Department of Health and Children and the HSE must embrace medical technology as a critical enabler in the delivery of cost-effective high-quality care. They must ensure that there is a clear and rapid pathway for new technologies to be purchased. IMSTA members are concerned that further blunt cost cutting will lead to reduced patient access to cost-effective medical devices, have an overall negative impact on health care expenditure and create further job losses in the industry. We want to ensure that service levels are maintained and therefore we are calling for formal engagement between Government and industry to identify opportunities for co-operation that bring benefits for patients and service users, health and social care services and industry. We would very much appreciate the support of the committee in seeking a meeting with the Minister, Deputy Harney, and Professor Drumm and in addressing the late payment issue so our members can get paid for medical devices which have already been used to treat patients.
