Billy Timmins
Question:13. Deputy Billy Timmins asked the Minister for Health if a workable system for the management of the health services budget is in place, as recommended in the Ogden report. [42414/13]
View answerWednesday, 13 November 2013
Questions (13)
Written answers
A Review of Financial Management Systems in the Irish Health Service, commonly known as the Ogden Report, was published in 2012.
The review was commissioned by the Secretary General of the Department of Health. Its overall intention was to review the state of the financial management system in place in the health sector in Ireland at the time in the context of the serious overruns projected to occur in 2012, the continuation of a challenging financial environment for the foreseeable future and the radical reforms envisioned in the Programme for Government.
Recommendations
The report made a number of recommendations to improve the financial management process within the HSE, with particular reference to managing the transition phase that the health sector was undergoing. The recommendations were grouped into 3 distinct areas: Improving Financial Performance; Policy Considerations; and Effective Transitioning (Managing the Change).
New Integrated Financial Management System
The Strategic Framework for Reform of the Health Services “Future Health” identified, as one of the key challenges, the need for an integrated financial management system. The current financial management system in the HSE was largely inherited from the health boards, the Eastern Regional Health Authority and the other bodies which were subsumed into the HSE. It has evolved over many years as the structure of the organisation has changed. However it is acknowledged, that given the new requirements for financial management and comprehensive financial reporting, the current operating model is inadequate for its purpose. The Department of Health is committed to working with the HSE to ensure the development and roll out of a comprehensive financial management system as a matter of priority.
As part of the process of further strengthening the financial management of the Health Service Executive independent expertise was engaged to evaluate the financial performance management system and a Finance Reform Board has been established within the HSE made up of senior management and representatives from the Departments of Health and Public Expenditure and Reform.
Current Position
The Finance Reform Board and my Department have endorsed proposals regarding the development and roll out of an integrated financial management system with my the full support and approval. Proposals for significant new projects must be approved by the Department of Public Expenditure and Reform which requires a robust business case to be made. The HSE is currently finalising a business case for submission to the Department of Public Expenditure and Reform.