Oireachtas Joint and Select Committees

Thursday, 23 July 2015

Joint Oireachtas Committee on Health and Children

Procurement Practices for the Purchase of Hospital Supplies and Equipment: Beacon Hospital and Health Service Executive

2:00 pm

Mr. Liam Woods:

Without going into individual tenders, it is not necessarily the case. We are considering a general reduction in the total cost to the health environment. We are also conscious that sometimes costs in hospitals may drive costs in the community, so we are very alert to the fact that something that may be very inexpensive in the hospital could, as a result of that contract, be relatively expensive when it finds its way into the community, so the tendering environment is a complex one. We are alert to what I think of as the true underlying value for the public system. If we enter into an arrangement and there is a loss, we will seek to compensate if we think it is a valid loss.

If the individual company does not tender the same price within the process, it is in some sense an indication from them as to the sustainability of the pricing level they had set. We work a closed book tender environment under public rules. We do our evaluation and then open the tender prices through proper process. That is what we follow.

There was a question on policy regarding the declaration of interests. Compliance with the Ethics in Public Office Act is a requirement for all staff in the HSE from grade 8 up - that is, all senior staff. There is a requirement under that to make declarations. For specific tenders, under our procurement regulations, people with vested interests are required to declare them or not engage in the process.

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