Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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To ask the Minister for Health if an impact analysis has been undertaken by his Department on the cut of €9 million from Saint James's Hospital, Dublin in 2013; and if he will make a statement on the matter. [13790/13]

James Reilly (Dublin North, Fine Gael)
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The HSE is taking a new approach this year in relation to determining hospital budgets. For the first time, budget allocations are related to projected spend rather than to historic budgets rolling forward from previous years. This is with a view to ensuring sustainable budgets into the future within the resources available. Heretofore, distribution of budgets across acute hospitals was made with limited reference to past organisational performance or realistic future cost reduction potential and the end result was a system in which some hospitals were significantly underfunded, leading to a position in which deficits become inevitable. We cannot afford to run our hospital system this way.

The rebalancing of hospital budgets is a very necessary step on the road to financial stability in the health system as a whole in 2013 and aims to introduce a different mindset and culture into the system. Without these changes there is a real risk that the hospital sector as a whole would be in significant deficit this year. This rebalancing of budgets is just one part of a comprehensive programme of reform in the hospital sector, as outlined in the Government’s Future Health strategy. This strategy includes the establishment of hospital groups this year, with the end goal being the establishment of Hospital Trusts in 2015.

The National Service Plan which was submitted to me in December sets out the quantum and type of health services to be provided in 2013 within the overall level of funding provided. In accordance with the Health Act 2004 I approved the National Service Plan and laid a copy of the plan before both Houses of the Oireachtas on 9 January this year. Subsequently, the Executive prepared and published its the Operational Plan and Regional Service Plans which underpin the National Service Plan at the end of February. These plans set out the detail of the level of services to be provided, including acute services in the hospital referred to by the Deputy. The HSE has responsibility for the delivery of services set out in these Regional Plans and to ensure that services are delivered within budget.

The Director General Designate of the HSE, Tony O'Brien, has provided full briefing on the Regional Service Plans to the Regional Forums. In relation to the specific query raised by the Deputy regarding the hospital's budgets, I have referred this to the HSE for direct reply.