Richard Boyd Barrett
Question:203. Deputy Richard Boyd Barrett asked the Minister for Health if he will give details of the €700 million cuts to the health budget; and if he will make a statement on the matter. [41012/12]
View answerWednesday, 26 September 2012
Questions (203)
Written answers
The HSE had overspent by €318 million by the end of August. If no action is taken, it is projected to have a deficit of €500 million at the end of the year. The HSE is facing a serious challenge and has to make very significant savings in the current year. There is intensive engagement between my Department and the Health Service Executive to address the overrun in health expenditure. In the short term, in order to address the 2012 position it has been agreed that cash limits will be imposed on agency and overtime and there will be more intensive management of absenteeism. In addition, travel and subsistence will be limited and there will be more intensive management of stocks in order to better manage cash. Other measures are also being undertaken in order to achieve a balanced budget. These include reductions in services, the use of capital to fund revenue on a once-off basis and the transfer of Department funds to the HSE on a once-off basis. I have instructed the Executive to provide fortnightly reports on the cash situation. The Regional Directors are being required to more intensively manage the cash so as to achieve a balanced vote. On a strategic level, my Department has undertaken a number of initiatives to address concerns about financial control in the HSE. These include engaging an expert from the UK NHS to examine the financial management of the HSE and make recommendations regarding strengthening and improving the management of its finances. PA Consultancy has been engaged to prepare an action plan for implementation of these recommendations. A new director general designate has taken up a position in the HSE, with a clear mandate to control expenditure this year and make proposals that deal with the challenge in 2013 and beyond. My Department is working intensively with the HSE on proposals for submission to the Government to address structural expenditure issues in the context of the 2013 Estimates.