Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 81: To ask the Tánaiste and Minister for Health and Children the way in which she justifies the cutback in funding to Monaghan General Hospital of €381,000; if she will give the hospital the necessary funds to re-establish itself not only in the interest of the people of Monaghan but for the benefit of the whole region; and if she will make a statement on the matter. [2200/05]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The national casemix programme compares costs and activity between 37 hospitals that participate in the programme. The programme incorporates over €3 billion of expenditure and 1.6 million patient encounters annually. The programme allows each hospital to take full account of its unique patients and unique issues. The entire process takes place in consultation with each hospital, placing patient-centred information at the centre of the process.

I am committed to performance related targets and casemix is the most internationally accepted performance-related acute hospital activity programme. Ireland operates a budget-neutral policy which rewards efficiency by re-targeting funds from less efficient hospitals to those which have demonstrated that additional funding will result in real benefits.

Following meetings between my officials, the north-eastern hospital group and hospital personnel to review the present position at the hospital, an allowance was agreed between the parties and incorporated in to the budget adjustment, thereby making provision for, and providing full compensation for, loss of activity. The negative adjustment of €368,606 was consequently a reflection of the hospital's true performance vis-À-vis its peers and excluding any issues beyond its control.