Dáil Éireann Debate, Wednesday - 13 November 2013
32. Deputy Bernard J. Durkan asked the Minister for Health the extent to which it has been found possible to identify areas within the health services wherein savings can be made to ensure that the health service in general remains within budget without undermining the viability of specific areas; and if he will make a statement on the matter. [48043/13]
View answerAs a result of the economic and financial crisis, the Irish public service is experiencing unprecedented reductions in spending, including the area of health. Current expenditure on healthcare fell by 10% between 2009 and 2013 and will reduce by a further €361m or 3% in 2014. Reductions in the health budget are compounded by underlying cost pressures, including substantial population growth and rising incidence of chronic disease.
In addressing the significant financial challenges faced by the health system, the focus is on actions that enhance efficiency, secure sustainability and do not compromise the overall goals of the health system. My objective is to protect frontline services by cutting the cost of services rather than cutting the services themselves. Various cost saving measures include reducing the public sector pay bill, the fees paid to professionals and payments to pharmaceutical companies.
A total of €666 million of health savings measures have been identified to meet the overall health expenditure ceiling reduction of €361 million for 2014, Programme for Government Commitments of €57 million and health service pressures of €248 million. Clearly the Health Sector will be facing serious challenges in 2014 to keep within its budgetary limits. The level of health services to be delivered within the available funding will be set out in the Health Service Executive’s 2014 National Service Plan. Given the budgetary constraints on the health services in recent years, it remains a priority to focus on improving the way services are organised and delivered, and to reduce costs so as to minimise any negative effect on service provision.
The saving measures agreed by Government to be taken by my Department in order to adhere to the 2014 Expenditure Ceiling post adjustments, are set out in the Expenditure report 2014.
