Dáil Éireann Debate, Thursday - 27 September 2012
15. Deputy Seamus Kirk asked the Minister for Health the position regarding the deficit in the health budget following the €130 million in cuts announced recently; if there will be any further cuts before Budget 2013; and if he will make a statement on the matter. [40963/12]
Amharc ar fhreagraThe financial situation in the HSE continues to be extremely challenging. In the short term, to address the 2012 position, a range of measures are 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.
The HSE has indicated that it will achieve €130m in savings to address the deficit. Nearly 50% will come from more focused cash and stock management initiatives, savings in medical equipment (non-capital), furniture, education, training, office expenses, travel and subsistence and advertising. €6m of savings will come from the non-reimbursement of certain non-essential products. €60.5m of savings will come from specific service-related measures. These measures are now the subject of intensive discussions with the HSE and local stakeholders. I have instructed the Executive that efficiencies must be achieved in the first instance before patient services are affected and in this regard, patient safety must be paramount. It is clear that further change is required in the health sector, and at a faster pace, and the 2012 Health Sector Action Plan – prepared under the Croke Park Agreement - contains a demanding and relevant set of measures. These include a comprehensive review of rosters, changes in skill-mix, productivity improvements and a focused approach to reducing sick leave levels. Further significant cost reduction / extraction is required in 2013 and 2014. Given the need to meet unavoidable pressures such as demographics, hospital services, specialised care and the reform commitments made in the Programme for Government, initial indications are that in excess of €700m will have to be taken out of the cost base of the health sector next year. My Department is working intensively with the HSE on proposals for submission to Government to address structural expenditure issues in the context of the 2013 Estimates.
