Billy Kelleher (Cork North Central, Fianna Fail)
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186. To ask the Minister for Health to explain the way his Department has developed programme- based budgeting in 2014; and if he will make a statement on the matter. [48732/14]

Leo Varadkar (Dublin West, Fine Gael)
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Successful transformation of our health services requires a corresponding transformation of the existing funding model. The first stage in transforming this funding model is to clarify funding streams through the creation of directorates and corresponding programme based budgets. In Vote terms, programme based budgets have already been established for the Primary Care Reimbursement Service and NHSS - Fair Deal.

My Department will continue to work with the HSE and the Department of Public Expenditure and Reform to develop a new Programme Based Budgeting system. However, given the multitude of financial systems in operation in the HSE, this work will be dependant on the development and roll out of an integrated financial management system. A detailed business case for a new finance operating model, including the procurement of a new Integrated Financial Management System for the wider health service, has been submitted to my Department and to the Department of Public Expenditure and Reform and is receiving attention. The HSE has begun an industry engagement exercise on the Financial Operating Model and the strategic procurement approach it will be taking with suppliers. A key feature of the exercise is an assessment of the technology options available to underpin value for money and the best strategic fit given the current investment.