Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

Question 59: To ask the Minister for Health and Children if she has been given an assessment of the long-term affects on services and waiting times of the widespread cutbacks to front-line health care already implemented and planned for implementation for 2009; if she has alternative proposals to the current cutbacks; and if she will make a statement on the matter. [20452/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

The HSE National Service Plan 2009 approved by me in December 2008 included €250m in economy and cost avoidance measures for 2009 (in addition to a continuation of €280m value for money measures from 2008). In broad terms, the planned level of activity outlined in the HSE Service Plan for 2009 is in line with that targeted in 2008. Since then, a number of potential exposures (some of which were identified in the National Service Plan) materialised. Based on the best information available, a figure of €540m was arrived at through detailed examination undertaken by the HSE and my Department.

The HSE submitted an amendment to the National Service Plan on 2 April under Section 32(4) of the Health Act 2004 with proposals to achieve savings of €72m through service reductions. As part of the Supplementary Budget on 7 April, additional funding of €160m was made available to offset the projected reduction in the yield from the health levy. It was also agreed that, in acknowledgement of the difficulty in accurately forecasting the impact of unemployment levels on medical card numbers, the funding provision in respect of medical cards would be kept under review. The approach agreed as part of the Supplementary Budget when combined with €133m in measures already identified by the HSE and not affecting the Service Plan, left a residual problem of €147m (compared to the previous figure identified of €540m).

As outlined in my press release of 24 April, I wrote to the Chairman of the HSE on 23 April outlining a series of measures totalling €147 aimed at avoiding service level reductions and which obviate the need for the proposed amendment to the existing National Service plan. This approach means that the post National Service Plan pressures of €540m have been addressed without recourse to service reductions. I have asked the HSE to continue to focus on delivering the level of services as originally planned. Notwithstanding the progress made, it is clear that the financial challenges underpinning the HSE's delivery of the Service Plan continue to be very substantial. The achievement of the service targets set out in the HSE Service Plan will require continued monitoring and the emphasis on budgetary management will need to be sustained at all levels.