Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Deputy Browne for this important and timely question in light of a number of public concerns that have been raised in respect of organisations funded by the Health Service Executive.

I wish to inform the Deputy and the House, as the Tánaiste did some moments ago, that a review of all section 38 providers is being conducted by external consultants. This review is now under way. The purpose of these reviews is to build on some of the measures previously put in place in recent years, to establish the standard of governance in place in these organisations and to confirm independently that the governance practices and procedures accord with those set out in their respective annual compliance statements of those agencies. These reviews will involve an examination of key governance processes and documents, including obtaining confirmation that internal financial controls and formal written financial procedures are in place in these organisations. Six of these reviews are currently under way. The outcomes of these reviews will inform the HSE's relationship with the agency concerned and any further enhancement that might be required in respect of the HSE's overall governance framework.

The HSE is funding approximately 40 agencies under section 38 of the Health Act as well as providing funding for or grant-aiding to a far wider group of what we know as section 39 agencies. The size of the 40 agencies delivering services ranges significantly from the Daughters of Charity, with an annual budget of a little over €2 million, to St. James's Hospital, with a budget of almost €357 million. Section 38 agencies have played an important role in the development of our health and social care services. Some agencies delivering services under section 38 arrangements are among the best we have in terms of the quality of care provided and the systems of governance employed. However, there is an absolute requirement for all agencies to review their governance processes continually to ensure these are sufficiently robust. In recent years, the HSE has taken significant steps to enhance its system for performance oversight of section 38 agencies. However, I believe these additional measures, involving an external review and independent oversight, are essential and welcome.

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