Billy Kelleher
Question:1084. Deputy Billy Kelleher asked the Minister for Health if the money follows the patient system of funding will commence on 1 January 2014; and if he will make a statement on the matter. [46058/13]
View answerTuesday, 5 November 2013
Questions (1084)
Written answers
I am happy to report that all necessary steps are being taken to ensure that implementation of the new Money Follows the Patient (MFTP) funding system will commence in line with the target date of 1 January 2014. Key developments in this regard are set out as follows.
My Department has been working with the HSE on a MFTP shadow funding exercise which will commence in the coming days. This exercise will take place in a selection of hospitals from across the hospital groups and will involve hospitals continuing to receive their existing base budget under a vote cashing system. However, a process will be put in place to: (i) compare, on a systematic basis, actual hospital activity against baseline activity targets; and (ii) inform hospitals of what the financial implications of any variance from the targets would be in a “live” system without impacting on budgets.
The HSE is also working closely with the Department to begin full phased implementation of MFTP in January. Money will effectively be following the patient at this point because hospitals will be funded on the basis of activity completed and the achievement of predetermined activity targets. Budgetary discipline will be delivered under the new system through the use of fixed budgets for MFTP activity. Appropriate governance arrangements to oversee implementation are being progressed and a communications campaign with the hospitals concerned will be rolled out between now and the end of the year.
Work to establish a National Pricing Office (NPO) is also underway. The NPO will be formed through the merging of the HSE Casemix Unit and the ESRI Health Research and Information Division. The Office will initially be established on an administrative basis in January 2014, prior to becoming a statutory body. The key functions of the Office will be to (i) set the national Diagnosis Related Group (DRG) prices on which the MFTP system will be based; and (ii) manage the HIPE data set.
These recent developments have built on the progress made earlier in the year. This included completion of a consultation process which showed that stakeholders were generally welcoming of the move to MFTP. An independent international expert engaged by the HSE also completed a “state of readiness” review for roll-out of MFTP. The key message from this readiness assessment was that the Irish health system is in a strong position to begin phased implementation of MFTP in hospitals in line with the target date of 2014. I regard MFTP as a key building block in the move to Universal Health Insurance and I am committed to supporting MFTP fully as it develops.