Dáil Éireann Debate, Tuesday - 18 September 2012
1662. Deputy Michael Healy-Rae asked the Minister for Health the amount of the Health Service Executive's budget that will over-run in 2012 and the over-run for the first six months of this year; and if he will make a statement on the matter. [37735/12]
Amharc ar fhreagraThe HSE is facing a very serious financial challenge and following a financial review of its National Service Plan which was submitted to the Board of the Executive in June, it was clear that it would have to make very significant additional savings over the course of the rest of the year. The June Performance Reports were considered by the Board and showed a net deficit of €295m. This report is published on the website of the Health Service Executive - www.hse.ie. Based on the rate of drawdown of its Vote, the HSE was forecasting a shortfall in Vote terms of approximately €500m by the end of the year if no action is taken. The Executive indicated that hospital activity, PCRS and retirements were significant factors contributing to the overrun.
Since then, there has been intensive engagement between my Department and the Health Service Executive to address the overrun in health expenditure. In the short term to address the 2012 position it has been agreed that cash limits will be imposed on agency and overtime and there will be more intensive management of absenteeism. In addition, travel and subsistence will be limited, and there will be more intensive management of stocks in order to better manage cash. Other measures are also being undertaken in order to achieve a balanced budget. These include reductions on services, the use of capital to fund revenue on a once-off basis and the transfer of Department funds to the HSE on a once-off basis. I have instructed the Executive to provide fortnightly reports on the cash situation, and the Regional Directors are being required to more intensively manage the cash so as to achieve a balanced vote.
On a strategic level my Department has undertaken a number of initiatives to address concerns around financial control in the HSE. These included engaging an expert from the UK NHS to examine the financial management of the HSE and make recommendations regarding strengthening and improving the management of its finances. PA Consultancy has been engaged to prepare an Action Plan for implementation of these recommendations. In addition, a new Director General Designate has taken up position in the HSE and has been given a clear mandate in respect of controlling expenditure this year and putting forward proposals that deal with the challenge in 2013 and beyond.
