Oireachtas Joint and Select Committees

Thursday, 25 April 2013

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 40 - Health Service Executive
Health Service Executive Financial Statements 2011

10:30 am

Mr. Tony O'Brien:

The figure of €721 million is detailed fully in the 2013 service plan. A copy of the service plan was included in the prepack provided to members and the relevant page is page 3. As Deputy McDonald will see, the primary care reimbursement service, which is related to both legislative changes and other efficiencies, is to produce €323 million of those savings. A further €106 million is attributable to pay and flexibility arrangements arising under the existing public service agreement. There are unallocated pay savings of €150 million, which in broad terms is what was anticipated under Croke Park II, as well as €108 million in other measures that are detailed elsewhere in the target and €34 million in terms of statutory income. A big proportion of these savings is attributable to changes in the cost of providing service by way of workforce-related matters. The substantial other component relates to changes in the cost of providing schemes, which are the product of changes in eligibility and co-payment issues with some reductions in costs, particularly under the Irish Pharmaceutical Healthcare Association, IPHA, agreement, and a number of changes that we are pushing forward, for example, in the medicines management programme, which is designed to increase the number of lower-cost drugs that are prescribed as a proportion of the total.