Dáil Éireann Debate, Thursday - 16 July 2015
545. Deputy Billy Kelleher asked the Minister for Health if he will provide details of the measures that have been introduced to achieve projected savings of €95 million from the annual drugs budget, as outlined in the Health Service Executive national service plan for 2015; and if he will make a statement on the matter. [30002/15]
View answer546. Deputy Billy Kelleher asked the Minister for Health to outline the measures that have been introduced in 2015 to improve the procurement of medicines to realise savings in the drugs budget, as outlined in the Health Service Executive national service plan for 2015; and if he will make a statement on the matter. [30003/15]
View answerI propose to take Questions Nos. 545 and 546 together.
The Health Service Executive's National Service Plan for 2015 provides for savings of €95 million to be achieved across the areas of general procurement and drug price savings. The HSE has achieved significant savings over the last number of years through the ongoing reform of its procurement process and in particular the development of a central procurement function. Other measures adopted include steps to achieve improved contract compliance, better stock management at point of use, training on the importance of compliance with procurement rules and national financial regulations and continued work with the Office of Government Procurement to deliver on the Government’s commitment to Public Sector Reform, which includes public procurement reform.
In relation to the achievement of further drug cost savings, my Department and the HSE engaged with the Irish Pharmaceutical Healthcare Association on this issue as part of a mid-term review of the 2012 Agreement with the IPHA. Whilst the preference was for these additional savings to be delivered in co-operation with the pharmaceutical industry, agreement was not reached in discussions. Consideration is therefore now being given to a range of options available to the State to achieve further savings on the cost of drugs in the current and future years. The Government's preference is that this should be achieved through a process of negotiation with the representatives of the pharmaceutical industry rather than the use of the legislative powers afforded to the HSE under the Health (Pricing and Supply of Medical Goods) Act 2013 to review and alter prices.
