Dáil Éireann Debate, Wednesday - 28 November 2012
238. Deputy Denis Naughten asked the Minister for Health the total cost of administration by service providers under the disability budget; the steps being taken to reduce this as a percentage of the total disability budget; and if he will make a statement on the matter. [53297/12]
View answerThe Value for Money (VFM) and Policy Review of the Disability Services, which I published in July this year, found that there was a wide variation in the percentage of the pay bill spent on management/administration costs across the statutory and voluntary providers and also in different care settings. The overall average pay cost of management/ administration based on 2009 data was calculated at €116m, or 11.1% of total pay costs, with management pay accounting for 4.4% of total pay, and clerical and administrative pay accounting for another 6.7% (ref. VFM Review, Table 4.13).
The VFM Review found that there were many factors influencing the percentage of an agency’s budget which was spent on administration, including the size and function of the agency, so that comparisons were best made between agencies of similar scale and model of service. The Review found that it was difficult to draw any conclusions about a universal approach to the generation of management/ administration savings, which were likely to vary on a case by case basis. On the broader front, the VFM Review identified significant opportunities to achieve savings in agencies’ unit cost base and to reduce average costs across the sector. Savings in management/ administration costs would be a component in this overall cost reduction. In terms of driving efficiencies, a number of administrative areas such as Human Resources, Finance, and Procurement are being examined and progressed through the work of the National Consultative Forum. The Health Service Executive remains committed to working with all voluntary disability service providers to ensure that all of the resources available for specialist disability services are used in the most efficient and effective manner possible.
