Tom Neville
Question:312. Deputy Tom Neville asked the Minister for Health if he will address a matter (details supplied) regarding the drug savings scheme; and if he will make a statement on the matter. [47086/19]
View answerTuesday, 19 November 2019
Questions (312)
Written answers
In 1993, an Indicative Drugs Target Savings scheme (IDTS) was agreed between the Department of Health and the Irish Medical Organisation (IMO). The Scheme generated considerable savings in drug costs amounting to €177 million, particularly in the earlier years. However, savings had reduced considerably by 2005.
The object of the IDTS was to encourage rational drug prescribing practices on the part of GPs and to enhance the information and services available to patients. In return, GPs would be allowed to access funds for approved practice developments (investment in practice premises, equipment, computerisation etc), research and education, and additional primary care expertise at practice level. The remaining portion of the savings went to the Health Board for broad developments in general practice.
It was subsequently agreed under the IDTS that GPs with a proven track record of savings could be allowed to draw down a sum equivalent to their anticipated saving over a five/ten year period and to repay this advance by way of their savings. Various types of agreements, many of them in the form of mortgages, were signed between GPs and various Health Boards who received advances. The advances were paid out between 2002 and 2004 and were for periods of between 5 and 10 years.
In 2005, following an independent evaluation of the Scheme, the HSE suspended the IDTS as it was no longer achieving its objective.
In the aftermath of the suspension of the IDTS, approximately 30 GP practices had been refusing to make their annual repayments. The HSE entered into a mediation process with the IMO who represented most of the GPs in question. The mediation process resulted in an agreement being reached between the HSE and IMO in March 2014. Most of the GP practices with an outstanding balance opted for the terms of the mediation agreement, of which three practices opted to repay in one lump sum.
Thirteen GP practices are continuing to repay their outstanding loans in accordance with the terms of the mediation agreed mechanism. The HSE is continuing to liaise with its legal advisors in relation to a number of GP practices who hold an advance loan and have yet to reach a settlement agreement. This process is on-going and the HSE is committed to reaching a legally enforceable agreement with these remaining GP’s in line with the terms agreed during the mediation process.