Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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189. To ask the Minister for Health the position regarding the PA Consulting Group's report of 30 August 2013 entitled Defining Financial Management: A Finance Operating Model for Health in Ireland; when this report was first presented to the Health Service Executive; when it was first published and with what public notice; where now stands the new operating model and the principles outlined in the conclusion and recommended way forward page; and if he will make a statement on the matter. [27557/14]

James Reilly (Dublin North, Fine Gael)
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Financial Reform is a key element of Future Health - A Strategic Framework for Reform of the Health Service 2012 – 2015. The HSE commenced the Finance Reform Programme in Autumn 2012. Central to the establishment of this programme was the recognition that successful implementation of Future Health and the wider reform agenda will require fundamental changes in the way financial management is delivered across the health system in Ireland. The successful delivery of these reforms is dependent on having robust financial systems and reporting in place to meet future requirements, as current practices are not sustainable in the emerging landscape.

One of the main outputs of Phase 1 of the programme was the development of a new operating model for finance in health which was contained in the document entitled Defining Financial Management: A Finance Operating Model for Health in Ireland. This was endorsed in September 2013 by the Finance Reform Board which comprises senior management representation from HSE, Department of Health and Department of Public Expenditure & Reform. The new operating model was subsequently presented to the HSE Leadership Team and noted by the HSE Directorate. There was also a presentation to me as Minister for Health on key elements of the Finance Reform Programme including the content of the Finance Operating Model and the proposed next steps.

This report encompasses a roadmap for the finance function to facilitate delivery of an efficient and effective financial service to meet the emerging requirements of the changing organisational face of the Health System. A critical enabler for the transformation of financial management is the introduction of a single Integrated Financial Management System (IFMS) which is considered to be the single most important non-clinical priority for the HSE this year. A key element of developing the model was the active involvement of staff (financial and non-financial) across the health service including statutory and voluntary service providers. The document was published on the dedicated Finance Reform section of the HSE website

The initial key element of Phase 2 of the Finance Reform Programme was the preparation of a detailed business case for a new operating model to meet the requirements of the Department of Health and the Department of Public Expenditure & Reform including the Office of the Government Chief Information Officer, DPER in relation to securing the necessary approval to procure a new Integrated Financial Management System (IFMS) for the health service.

The Business Case defines the case for change and scope as well as providing an estimate of the resources required to deliver the operating model and supporting technology. This Business Case completed in April 2014 is a major element of Phase 2 of the Programme. Following a feedback phase, the HSE submitted the Business Case to my Department on 30 May 2014 for endorsement and submission to DPER. The business case is under consideration within the Department and has been forwarded to the Department of Public Expenditure and Reform.