Billy Kelleher (Cork North Central, Fianna Fail)
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Question 167: To ask the Minister for Health the services he has instructed the Health Service Executive to cut in order to get its books in order; and if he will make a statement on the matter. [28777/12]

James Reilly (Dublin North, Fine Gael)
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The Health Sector is facing very significant financial challenges in 2012 and 2013. The HSE's National Service Plan was prepared in the context of the challenges faced by the health services this year in terms of reduced staffing levels, and a reduced budget, combined with increasing demand for services. It also took account of additional funding being invested this year in areas such as mental health services, primary care, the National Clinical Care Programmes and children's services.

The budget reductions, along with the structural changes being implemented are posing a serious financial challenge to the HSE, and the Executive is reporting a deficit in Vote terms of €169m at the end of May. Based on the current rate of drawdown on the Vote it is projected that there will be a deficit of €450 - 500m in 2012. As set out in the National Service Plan, the HSE will seek to reduce and eliminate budget deficits while minimising the impact on front line services by fast tracking new, innovative and more efficient ways of using reducing resources. New models of care will be introduced across all services, which will treat patients at the lowest level of complexity and provide quality services at the least possible cost. The roll-out of the National Clinical Care Programmes and Special Delivery Unit initiatives will also deliver greater productivity.

The HSE has set out a number of further measures to address the emerging financial situation. These include:

- Requiring hospitals to bring activity levels back in line with targets set out in the National Service Plan;

- Reducing use of agency staff; and

- Implementing reforms under the Croke Park agreement to achieve more cost effective use of human resources.

The Board of the Executive has been provided with a range of cost containment plans which have been submitted to the Department. Following my Department's assessment of the plans, I intend to bring proposals on the matter to Government.

An independent financial expert has also been appointed to carry out a review of the HSEs financial performance management and control systems and it is intended that he will report back to the Secretary General of the Department by the end of June.