David Cullinane
Ceist:1006. Deputy David Cullinane asked the Minister for Health the estimated cost of eliminating the deficits in section 39 organisations. [21133/20]
Amharc ar fhreagraTuesday, 8 September 2020
Ceisteanna (1006, 1148)
David Cullinane
Ceist:1148. Deputy David Cullinane asked the Minister for Health the estimated cost of clearing the deficit for all section 38 and 39 organisations; and if he will make a statement on the matter. [21462/20]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 1006 and 1148 together.
As the Deputy will be aware, the Health Service Executive (HSE) and all of the providers it funds under Sections 38 and 39 of the Health Act 2004 are expected to continually review their cost structures to ensure the best use of resources and a focus on the use of these resources for client care to the greatest extent possible. The very significant additional financial resources provided to disability services over the last year, together with the achievement of relatively modest efficiency savings, form part of the financing of the increased service levels set out in the National Service Plan 2020.
It was intended that these efficiencies would be achieved in 2020 through the application of a 1% efficiency target to existing budgets across all service areas. However, it has been acknowledged that the achievement of the savings will be challenging in the context of the COVID-19 global pandemic and the need for the HSE to focus resources on implementing the health actions in the National Action Plan for COVID-19. Accordingly, the Minister of State with responsibility for Disability and I are of the view that the 1% efficiency target should not be applied to the budgets of disability service providers this year and I have written to the HSE to ask it to relieve Section 38 and Section 39 Disability Service Providers of the obligation to achieve this target.
I am aware that a number of Section 38 and Section 39 Disability organisations have reported they are facing financial challenges and have incurred deficits. I understand that the reported deficits are cumulative and historical, having arisen over a number of years, and generally resulted from organisations incurring expenditure in excess of agreed levels set out in their annual Service Level Arrangements. Organisations funded by the HSE are expected to operate within budget and any deficits accruing through such activities are the responsibility of these organisations themselves, as both Section 38 and Section 39 bodies have independent Boards, who govern the organisations concerned.
As the financial and performance oversight of Section 38 and Section 39 organisations is a service matter for the HSE, I have asked the HSE to respond to the Deputy directly on the matters raised, as soon as possible.