Thank you, Chairman. I am accompanied today by Mr. Dermot Smyth, assistant secretary in the finance division of the Department of Health and Children, Mr. Paul Barron, assistant secretary in charge of the acute hospitals division, Mr. Pat McLoughlin from the Health Service Executive in charge of the National Hospitals Office, Mr. Aidan Browne from the Health Service Executive in charge of primary, community and continuing care and Ms Frances Fletcher, who has responsibility for intellectual disabilities at the Department of Health and Children.
I do not propose to read an opening statement. I have circulated a statement among the committee members and I will make a few preliminary remarks on it. We will then have more time for engagement at the end. The Estimates take a different form this year as we have two Votes, Vote 39 for the Department and Vote 40 for the Health Service Executive. The HSE has its own Vote for the first time and the creation of this separate Vote brings the highest level of direct accountability for the delivery of health services. The Revised Estimate for 2005 for both Votes shows a total gross Estimate of €11.941 billion for health services.
Vote 39 contains funding for my Department and allows a level of gross expenditure of €401 million and net expenditure of €233 million. The difference is in appropriation which is mainly accounted for by excise on tobacco products. Vote 40 contains the funding for the Health Service Executive, the gross provision of which is €11.54 billion while the net Exchequer funding is €9.555 billion. The total consists of €11.356 billion in current funding and €584.5 million in capital funding. Of the €11.3 billion in current funding, €543 million relates to HSE income not previously included in the Vote. This is due to the move away from an accrual accounting system to a cash-based system which will lead to greater transparency. It consists of the public charges that are raised with charges levied on insurers for private beds in public hospitals. That amounts to €543 million. A further €217 million relates to once-off technical adjustments as the HSE has to show a balance of zero at the end of the year. Excluding these items, which allows us to compare like with like, the increase in current funding over 2004 is 10.8%.
The success of our economy has allowed us to treble health spending in real terms since 1997.
We are fortunate that the success of the economy has allowed us to increase substantially funding for the provision of health services. The OECD reports that Ireland had the fastest growth rate of all OECD countries in spending per capita on health in the period 1997-2002, at 67%. Cross-country comparisons are difficult, but the latest OECD data show that Ireland’s spending per capita on health exceeded that of the United Kingdom in 2002. These data were calculated using the technical measure of US dollar purchasing power parity. The 2004 spending review in the UK showed that total public sector health spending will be £88.6 billion for 2005-06. This equates approximately to €2,200 per person in the UK. Ireland’s total public sector health spending is now about €3,000 per person. Even if technical adjustments are made for relative price levels and to exclude certain categories of spending for cross-country comparisons, our per capita health spending is significantly higher than that of the UK. Our capital budget for health this year is about €146 per person. That is nearly 60% higher than the UK, which will invest about €92 per person.
The governments of major developed economies are discussing what the appropriate level of spending should be. Countries like Germany and France are trying to keep growth in spending to about 2% in real terms. In the UK this rate is approximately 6%. Our growth in real terms was 8%, which is four times the level of that in Germany and France. In Ireland we sometimes underestimate the considerable taxpayers' resources that are being invested in the delivery of health care. The reform programme under way is about ensuring that we have a clearer streamlined way of administering and managing that resource to ensure that we get the best possible value for money and outcome for patients.
There have been record levels of activity in the acute hospital system over the past few years. People are living longer, getting new treatments faster and seeing more specialists. We are living and working in a healthier atmosphere. People with disabilities are finally getting the priority and the support they deserve. We want to ensure that patients are at the centre of all the decisions we make. It is easy to talk about patients coming first, but that must mean that no vested interest can stand in the way of change. We must question those interests that are not prepared to change.
Everyone must participate in this change process, including the Minister for Health and Children, the Department of Health and Children, the Health Service Executive and all those involved in the front-line delivery of services. The clearer role between the Department of Health and Children and its Minister, on the one hand, and the Health Service Executive, on the other, will make it easier to have clear lines of accountability and greater transparency regarding respective responsibilities to measure performance better. I will discuss this point later.
As far as the acute hospitals programme is concerned, €50 million of additional funding has been provided for the commissioning of a number of new units. Nothing annoys people more than seeing new state-of-the-art facilities which are not in operation because the staff are not available to open them. In the context of public expenditure, this does not make sense and probably annoys people more than not having the facilities in the first place.
Inpatient and day case discharges from acute hospitals amounted to 1,040,181 in 2004. This figure represents approximately 2,850 patients being discharged each day. Total discharges for 2004 show an increase of over 33.4% since 1997. Significant investment has been made in additional specialists and diagnostic and investigative processes. Accident and emergency departments in our hospitals deal with approximately 1.2 million cases per year, or 3,300 per day. That is an extraordinarily high figure and given that those are supposed to be accident and emergency units, it is unusually high. To a large extent, the situation in accident and emergency departments is a consequence of some of the deficiencies in the wider health care system.
Frequently, accident and emergency units must compensate for the fact that no out-of-hours GP service exists in certain parts of the country, GPs cannot get easy access to diagnostic facilities or people are waiting for long periods for outpatient appointments. These factors are among the reasons accident and emergency figures appear to be higher than should be the case for a young population.
This year we invested heavily in a number of initiative focused on the resolution of the difficulties — the Deputies present are more than familiar with them — in accident and emergency services. We are making enormous progress with those initiatives. For example, we have acquired 90 intermediate beds to deal with 500 patients which will allow people move to a more appropriate setting from an acute hospital to an intermediate dependancy bed, before going to either long-term care or, more hopefully, back home. We are engaged in discussions with GPs, particularly on the north side of Dublin, with a view to establishing badly-needed out of hours services. It is intended that these will be established this year. The director of the National Hospitals Office is finalising arrangements for the establishment of a national audit and inspection process to measure and improve cleanliness in all acute hospitals. This should be a basic feature of the hospitals.
We are also installing a new MRI scanner in Beaumont Hospital and the provision of acute medical units is currently being discussed with Tallaght, St. Vincent's and Beaumont hospitals. The tender process for the provision of high dependency beds is in its final stages and we hope to make some of these beds available shortly. Similarly, provision has been made for 500 additional home care packages. Effectively packages will be customised to suit the needs of individual patients to allow them to return to their own homes.
I have stated on many occasions that there are no easy solutions to the problems with accident and emergency services. Only the implementation of focused measures dealing with inflows and outflows to and from the hospitals will resolve permanently the difficulties experienced. For example, Dr. Conor Burke of Blanchardstown Hospital has stated in a recent paper that had it been possible to discharge everyone who was sufficiently medically fit to be discharged, there would have been no problem with accident and emergency services at that hospital. In addition to the measures I have outlined, we must ensure that we have different and more effective discharge policies and alternative settings, particularly for elderly patients who frequently do not need to be accommodated in the acute hospital system.
I have issued a text dealing with cancer services. Approval has been given to roll out BreastCheck to both Galway and Cork and the tender will be placed in the EU Journal in the coming days. The national treatment purchase fund has received an additional €20 million. This will bring the amount available to the fund to €64 million. This is a new, focused initiative and is performing extremely well. At the end of March 2005, almost 28,000 patients had been treated. The additional funding will enable the fund to arrange for treatment for 17,000 patients in 2005 alone, a 30% increase over last year. As far as the bed capacity initiative is concerned, the announcement in September 2004 of the opening of new units included a further 200 beds, bringing the total number of additional inpatient beds or day places since 2002 to 900. At the end of March 2005, 713 additional beds were in place. Funding is being provided this year to enable the remaining beds to come on stream before the end of 2005. In the area of renal services, additional revenue funding of over €8 million is being provided. The number of patients on dialysis increased from 641 to 1,210 between 1998 and 2004, representing an increase of 88.7% in six years.
An additional €5 million of funding for child care services is being made available in 2005 to allow for the further implementation of the Children Act 2001, additional staff for the Special Residential Service Board and more community based programmes such as the Springboard project, youth advocacy programmes and the teenage parent support programme.
In the context of this year's Estimates, disability services are a major priority for the Government. As the Deputies are aware, we have moved to a system of multi-annual funding in this area. An additional sum of €40 million is being allocated to services for persons with intellectual disability and those with autism. This new funding will provide 270 additional residential places, put in place approximately 90 extra respite places, provide 400 new day places, improve specialist support services for people with major challenging behaviour and provide €2 million towards meeting the costs associated with moving individuals to more appropriate placements.
An additional sum of €15 million is being allocated to provide approximately 60 new places for people with significant disabilities who are currently placed in inappropriate settings, approximately 200,000 extra hours of home support and personal assistance, additional funding of €3 million for aids and appliances, approximately 90 extra rehabilitative training places and additional funding for voluntary organisations. An additional sum of €15 million is being allocated to mental health services.
The development of services for older people must be an increasing priority for the Government and society. A total of 12,000 additional people each year reach the age of 65 and a total of 850 people reach the age of 80. This requires more supports, particularly at community and home level, but also, unfortunately, at institutional level. The implication of taking an average of approximately 5% requiring institutional care is that we must provide additional places. As far as policies for older persons are concerned, the Government is anxious to have a clear, coherent and understandable policy. Briefly, the Minister for Social and Family Affairs, the Minister for Finance and I have established a working group, to report to us by June 2005, regarding the important matters that must be dealt with. We are in possession of the O'Shea and Mercer reports and have issues concerning how the services will be funded in future. However, in the first instance, we must decide what the policy approach should be.
Clearly, the controversy surrounding the long-stay charges has dominated much of our activity in recent weeks. The memorandum to establish the new regime will be with the Government within the next fortnight and the proposals will be published thereafter. We intend to make it as easy as possible for the individuals affected, such as the elderly or those in long-term care in mental or psychiatric units, to access their entitlements. This will be a central feature of our approach. We have set aside €40 million for the ex gratia payments that were announced by the Government before Christmas 2004. Much of that money has been paid and was provided for in the Estimates.
We have provided an extra €1.4 million for tobacco control. One of the greatest successes of recent years has been the smoking ban in the workplace, with the compliance rate as high as 94%. People in every foreign country I visit are amazed at our success and many states are emulating the Irish example. It is an area where Ireland has been considerably ahead of others and with great success. Clearly, success in terms of reducing cancer and the effects of smoking on the health service will take a considerably longer period to achieve. However, early indications regarding the numbers of people smoking and the volume at which people were smoking are very encouraging.
Since the launch of the cardiovascular health strategy, €60 million, which has been provided for the appointment of approximately 800 new staff, has been invested. Death rates from coronary heart disease are decreasing steadily and in the under 65s are approaching those of the then 15 EU member states.
There are many other issues that affect the Department of Health and Children but I do not wish to take up too much time. There is considerable interest in medical cards and the new doctor-only medical card that the Government has introduced. The HSE is making arrangements to place advertisements in the national press with regard to these new cards. It is intended that approximately 1.38 million will have access to either full or doctor-only medical cards.
Huge increases in the general medical scheme have been experienced in recent years on the doctors' side. The sum of money going to doctors doubled from €158 million to €300 million between 1998 and 2004, even though the number of medical cards decreased by 100,000. We must ensure that, in the context of providing resources to those most in need — particularly low income families — these cards are issued and used very quickly. I look forward to the co-operation of Irish Medical Organisation in respect of this matter.
Many people are aware of the enormous investment that has been made on the capital side in respect of the nursing degree programme. Over €240 million has been invested in 13 new nursing schools, which has a revenue implication of €90 million per year. We will experience some difficulties this year because we are moving away from the apprenticeship-based three-year model to the four-year degree model. This is the reason there is a major recruitment drive under way overseas. I will deal with other issues in the context of questions and answers.