Dáil Éireann Debate, Tuesday - 31 January 2012
618 Deputy Brendan Griffin asked the Minister for Health the amount paid by the Exchequer in respect of Health Service Executive procurement processes per annum; if he is satisfied that the current processes represent value for money; his views that there is scope for savings in relation to procurement for smaller purchases — for example, less than €20,000; and if he will make a statement on the matter. [5209/12]
Amharc ar fhreagraThe Programme for Government contains a commitment to reform public procurement. In addition, the recently published Public Service Reform Plan addresses reform of public procurement processes, reducing costs, addressing duplication and eliminating waste.
HSE procurement includes all of the activities involved between the identification of a requirement for goods or services through to acquisition. The Executive has introduced a Single National Procurement Operating Model to support and deliver procurement. This integrated model has:
Been a key enabler in maximising purchasing power in the market place and achieving best value for money;
Facilitated more efficient operations in terms of standardised processes and reduced duplication of effort, thereby reducing the time and effort spent on transactional processing;
Improved business intelligence and reporting: Improving quality and timeliness of information, thus placing greater emphasis on reporting and business decision support;
Improved compliance and control: Greater transparency in the use of public funds, leading to better value for money;
Introduced management of stock at point of use — this is where procurement staff have become involved in management of stock, for example, at ward level. As part of the consolidation exercise procurement staff will be available and trained to manage stock at point of use on behalf of our customer base. The Point of Use concept is now being aggressively progressed. During 2011, it has been rolled out in a number of high tech clinical areas resulting in:—
30% stock reduction (approx).
7% reduction in demand (approx).
Clinical staff freed up to focus on frontline services.
A Framework Agreement in relation to Managed Services for Aids and Appliances is now in place.
In addition the HSE works closely with the National Procurement Services and the Steering Group for Reform to progress Value for Money Initiatives across the Public Sector. During 2011 HSE Procurement achieved savings in excess of €74m. Efficiencies and value delivered across HSE Procurement were against a backdrop of a 4.6% decrease in staffing levels.
In respect of purchases under the value of €20,000, the threshold laid down within the Financial Regulations apply, that is, three quotations would be sought from the supply base to ensure value is being achieved in respect of these purchases.
The HSE continues to engage with suppliers to ensure they understand how to do business with HSE and to ensure that HSE maximises competition available. During 2011 in excess of 500 engagements took place and in addition there were also a number of high level engagements.
I expect that the Executive will continue with its efforts to achieve value for money and the generation of savings during 2012.
The Deputy's question on the amount paid in respect of Health Service Executive procurement processes per year has been referred to the executive for direct reply.
