Dáil Éireann Debate, Tuesday - 18 September 2012
1766. Deputy Gerry Adams asked the Minister for Health the date on which he signed off on the decision to cut a further €130 million worth of services between September and the end of 2012; and if he will provide the timeline of events. [38563/12]
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. Following a number of meetings, additional cost containment measures were agreed and communicated to the Department of Public Expenditure and Reform on 29th August. It was outlined that in the short term, to address the 2012 position it had been agreed that cash limits will be imposed on agency and overtime and there would be more intensive management of absenteeism. In addition, travel and subsistence would be limited, and there would be more intensive management of stocks in order to better manage cash. Other measures would also be undertaken in order to achieve a balanced budget, including 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.
