The current budget allocation process in the HSE is based on a historic roll forward methodology. It allocates funding on a historic basis to the care centres from where the services are provided. The system funds hospital, primary and community care in the various Integrated Service Areas (ISA) irrespective of whether the patient lives within the boundary of the ISA.
‘Future Health: A Strategic Framework for Reform of the Health Service 2012 – 2015’, published in November of last year, recognised that fundamental reform of our funding model is required. This document indicated the Government’s intention to introduce a Money Follows the Patient (MFTP) funding model in the health service to replace the historic block grant method. Detailed proposals for the roll-out of MFTP were outlined in the ‘Money Follows the Patient Policy Paper on Hospital Financing’ which was published for consultation in February. While this document focuses on public treatment in public hospitals, it highlights the intention to extend MFTP to other areas of the health service in order to support integrated care across different settings. The Government is confident that the reform of the funding system will help to deliver a greater degree of fairness, efficiency and transparency while also driving improvements in quality.