The financial situation in the HSE continues to be extremely challenging. In the short term, to address the 2012 position, it has been agreed that cash limits will be imposed on agency, overtime and there will be more targeted 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 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. The HSE has been required to review all pay and non-pay savings targets with a view to further targeting all areas which do not compromise patient safety.
Intensive discussions are ongoing between the Department of Health and the HSE in order to address the deficit. Each RDO is working closely with the National Directors of Integrated Services and Finance with a view to maximising the potential savings identified within their cost containment plans with a view to minimising the effect on front line services to the greatest extent possible.