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Health Services Funding

Dáil Éireann Debate, Wednesday - 9 November 2016

Wednesday, 9 November 2016

Questions (172)

Micheál Martin

Question:

172. Deputy Micheál Martin asked the Minister for Health the progress made in relation to the programme for Government commitment on addressing long-term challenges such as long-term funding models in health. [33805/16]

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Written answers

The Programme for a Partnership Government committed to the establishment of an Oireachtas All-Party committee to develop a long term vision for healthcare and direction of health policy over a 10 year period, with cross party support. The Committee on the Future of Healthcare was established in June this year and has been specifically tasked with examining and costing different funding models for the health service and to make recommendations on a funding approach that is best suited to the Irish context.

The development of a new funding model is key to the long-term sustainability of our health service and the development of a universal single tier service.

However, making changes to funding levels and financing methods takes time and requires careful management, not least to avoid disruption to vital existing services. It is for these reasons that the all-party Committee has been established and tasked with considering this important issue in the context of an overall long-term vision and plan of how the health service can be developed.

I have already committed to not making any major structural reforms in this area while the Committee does its work, as we have to be serious about building consensus on how to fund a shared vision of universal healthcare. However, I am continuing delivery of aspects of the ongoing health reform programme which must be completed so that the foundations are in place to change the funding model. In this regard, it is worth noting that one of the key building blocks for universal healthcare that is currently being advanced by the HSE is the introduction of a more efficient payment system for hospitals known as activity-based funding.

The Programme for Partnership Government confirmed the Government’s continued commitment to the implementation of activity based funding, which went live in 2016. This is a model whereby hospitals and other healthcare providers are funded based on the quality and quantity of the services they deliver for patients as opposed to historical budgets. Linking budgets with activity will drive efficiency and increase transparency in the provision of high quality services for patients.

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