HSE budget, expenditure and procurement to be examined by PAC

Chairman of the Committee, John McGuinness said: “The HSE has a budget of approximately €14 billion a year, which it must manage effectively to obtain value of money and to ensure that all voted moneys are spent as intended. It was reported that by the end of March 2012, the HSE was €145 million over budget and by the end of April it was €200 million in deficit.  Concerns have been expressed about the effectiveness of the HSE controls and the worsening financial performance. The Committee will want to ascertain what is the current budget deficit and what is the projected financial position for 2012. We will also want to determine whether the HSE has a strategy in place to deal with their deficit.”

The HSE is the largest employer in the public sector and the total pay costs for HSE staff only were €5.14 billion.

Deputy McGuinness said: “The current staff complement will be among the issues discussed at tomorrow’s meeting. What is the current staff complement of the HSE? How have early retirement and severance schemes affected the work of the HSE? What initiatives have been put in place to address staff shortages on front line services? What is the current rate of absenteeism across the HSE?  According to the accounts, 9,500 HSE staff members received allowances in excess of €10,000 in 2010, with the maximum payment being a staggering €186,004. We will want to know the circumstances that gave rise to such a large allowance.”

The HSE is the largest purchaser in the State. In 2007, it established a Procurement Directorate with responsibility for managing its entire procurement function. This Directorate became functional in November 2010.

Deputy McGuinness concluded: “The HSE’s procurement practices are not what they should be, especially with regard to its massive purchasing power. There is scope to extend the use of framework agreements. Procurement practices are hindered in particular by Information Systems that have not been consolidated and, at present, contain 12 different procurement systems. Procurement and monitoring in terms of consultancy services was also poor and in particularly the monitoring of costs. The Committee will want to establish why it took from 2007 to the end of 2010 for the Procurement Directorate to become operational? Who is in charge of the Procurement Directorate and what are their qualifications and experience applicable to this role? Are targets for the Directorate set? Has the HSE undertaken any benchmarking exercises with comparable health systems internationally, to examine their systems for procuring goods and services and where potential improvements could be made?”

This meeting with Cathal Magee, Chief Executive, Health Service Executive will take place at 10am tomorrow, Thursday, 28th June in Committee Room 1, Leinster House 2000.

Committee proceedings can be followed live at: http://bit.ly/24YmPI

Ends

For further information please contact:

Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551

Committee of Public Accounts

Membership

John McGuinness (Chairman)
Kieran O’Donnell (Vice Chairman)
Paul J Connaughton,
John Deasy,
Paschal Donohoe,
Gerald Nash,
Simon Harris,
Michael McCarthy,
Mary Lou McDonald,
Sean Fleming,
Eoghan Murphy,
Derek Nolan,
Shane Ross