A Supplementary Estimate of €360 million was provided in 2012 to ensure that the HSE would achieve a balanced Vote. This was offset by savings of €70m identified within my Department's Vote, and a once-off Extra Exchequer Receipt of €45m from the Medical Defence Union, resulting in a net supplementary requirement of €245m. Therefore, the underlying deficit was funded by the Exchequer in 2012.The excess expenditure was predominantly in the PCRS and acute hospital sectors.
Table 1 on page 3 of the HSE Service Plan sets out the 2013 Budget Framework as determined by the 2013 Estimate. It acknowledges that a total incoming deficit of €460m is reflected in the rate of expenditure coming into the year - €391m is considered in the context of the gross expenditure level, and €69m is reflected in a reduction in targeted Appropriations-in-Aid. This has been taken into account when considering the savings requirement for health in order to meet its expenditure limit as determined by Government. This level of underlying expenditure, when taken with the unavoidable pressures facing the sector in 2013 and the commitments under the Programme for Government, means that the Health Group of Votes must generate savings in 2013 of €781m as set out in the following table.
|
Measure
|
Savings in 2013
|
Full Year Savings
|
|
|
€ million
|
€ million
|
|
Primary Care Schemes
|
|
|
|
Reduction in cost of Drugs and other prescribed items
|
160
|
330
|
|
Increase DPS threshold to €144 per month
|
10
|
10
|
|
Increase prescription charges for medical card holders
|
51
|
51
|
|
Reduced professional fees
|
70
|
80
|
|
Other changes to Primary Care schemes
|
32
|
44
|
|
Other areas
|
|
|
|
Pay-related savings
|
308
|
458
|
|
Increased generation of private income
|
65
|
115
|
|
Savings on Department Vote
|
60
|
60
|
|
Procurement Measures
|
20
|
20
|
|
Other measures
|
5
|
5
|
|
Total Net Savings
|
781
|
1,173
|
The HSE's National Service Plan provides for a total cost reduction of €721m, the balance being met through a net reduction of €60m on my Department's Vote. The normal activities of any business result in accruals at the end of the year. Details on bank balances, creditors and tax liabilities will be set out in the Appropriation Account and Annual Financial Statements of the HSE, which will be published following their audit by the Comptroller and Auditor General.
