Dáil Éireann Debate, Thursday - 8 February 2018
90. Deputy Bernard J. Durkan asked the Minister for Health the reason for an alleged shortfall in the health budget; if the information now emerging was brought to the attention of the budgetary and planning sections of the HSE or his Department; if particular issues have arisen which might require remedial budgetary action in the future; and if he will make a statement on the matter. [6363/18]
Amharc ar fhreagraThe National Service Plan 2018 sets out a budget of over €14.5 billion for the HSE which is the highest ever budget allocated. Since Budget 2015, the HSE has received significant additional funding of almost €2.5 billion, or an extra 20%, with an additional €600m provided for 2018 alone. This is a substantial additional level of funding for our health services and the HSE has indicated in the Service Plan that it will provide a level of service in 2018 that matches, and in some cases surpasses, that provided in 2017.
The amount allocated followed an extensive process between my Department, the HSE and DPER which considered both the estimated funding requirements submitted by the HSE, and the fiscal position. These type of engagements are a normal part of the Budgetary process and happen with agencies across Government and include public bodies putting forward spending proposals. Once the final allocation is determined by Government, it is necessary for all bodies, including the HSE, to operate within the allocation provided.
It is acknowledged that the issue of health funding is a major policy challenge, not only in Ireland but also internationally, and that the need for effective financial management is crucial. This is particularly the case with an increasing population, an ageing demographic, more acute health and social care requirements and rising demand and cost of both health technology and drugs. It is also important to state that the level of funding provided to the health services in this country compares favourably to health services internationally and health expenditure per capita is above the OECD average.
It should be noted that the Service Plan for 2018 also contains a specific section on improving value and services. Recognising the necessity to secure improved value, the HSE outlines a Value Improvement Programme in Section 7 of the Service Plan which will undertake a systematic review of its existing activities in order to drive value. This programme has three broad priority themes. The first is a programme focussed on cost reductions and savings at service level which targets €77m in savings. The second is a Corporate Value programme where the HSE will identify savings and cost reductions of €119m across their entire corporate operations. My Department will work with the HSE within a shared governance and oversight framework on the third strategic Value Improvement Programme. This will be a multi-year strategic initiative to identify and implement savings from productivity, improved models of care, policy and reform delivery, which is intended to secure savings of €150m.
