James Reilly (Dublin North, Fine Gael) | Oireachtas source

In the region of a €500 million of these savings will be achieved through cost efficiencies and separately through reorganisation under the public service agreement. The majority of savings will have no recourse to front-line activity. However, 2013 will be a challenging year and will require taking a number of tough measures to ensure the most vulnerable are protected.

The following is a summary of measures to be taken by the health group of Votes in order to adhere to the 2013 expenditure ceiling. There will be a reduction in the cost of drugs and other prescribed items, saving €160 million; an increase of the drugs payment scheme threshold to €144 per month, saving €10 million; an increase in prescription charges for medical card holders, saving €51 million; reduced professional fees, saving €70 million; other changes to primary care schemes, saving €32 million; pay related savings of €308 million; increased generation of private income at €65 million; savings on the Department Vote of €60 million; procurement measures saving €20 million; and other measures of €5 million in savings. The total net saving is €781 million.

The Department of Health's own Vote is being reduced by €90 million, with €30 million transferring to the HSE and €60 million in savings. Even allowing for additional expenditure related to the EU Presidency, there will be a reduction in the Department's administrative budget. There will be savings with the National Treatment Purchase Fund, and €25 million of its budget will be transferred to the HSE. There will also be a range of further reductions, including reductions in funding for health agencies.

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