Dáil Éireann Debate, Thursday - 10 July 2014
178. Deputy Caoimhghín Ó Caoláin asked the Minister for Health his views on whether the full implementation of the recommendations of the PA consulting report and action plan of September 2012 addressing weaknesses in financial management and cost containment within the Health Service Executive could deliver savings of 5% of the total HSE budget; and if he will make a statement on the matter. [30462/14]
View answerFinancial Reform is a key element of Future Health - A Strategic Framework for Reform of the Health Service 2012 – 2015. Following on from the report referred to by the Deputy, the HSE commenced the Finance Reform Programme in Autumn 2012. Central to the establishment of this programme was the recognition that successful implementation of Future Health and the wider reform agenda will require fundamental changes in the way financial management is delivered across the health system in Ireland. The successful delivery of these reforms is dependent on having robust financial systems and reporting in place to meet future requirements, as current practices are not sustainable in the emerging landscape.
One of the main outputs of Phase 1 of the programme was the development of a new operating model for finance in health which was contained in the document entitled Defining Financial Management: A Finance Operating Model for Health in Ireland. This was endorsed in September 2013 by the Finance Reform Board and there was also a presentation to me as Minister for Health on key elements of the Programme and the proposed next steps. This report encompasses a roadmap for the finance function to facilitate delivery of an efficient and effective financial service to meet the emerging requirements of the changing organisational face of the Health System.
A critical enabler for the transformation of financial management is the introduction of a single Integrated Financial Management System (IFMS) which is considered to be the single most important non-clinical priority for the HSE this year. A detailed business case for a new operating model has been submitted to my Department and the Department of Public Expenditure and Reform in relation to securing the necessary approval to procure a new Integrated Financial Management System (IFMS) for the health service. A new integrated financial system will greatly enhance the health sector's ability to effectively manage and monitor its budget at all levels.
