Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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198. To ask the Minister for Health his views that the full implementation of the recommendations of the PA Consulting report, Addressing Weaknesses in Financial Management and Cost Containment within the Irish Health Service Executive - A Report and Action Plan September 2012, could deliver savings of 5% of total Health Service Executive budget; and if he will make a statement on the matter. [25635/15]

Leo Varadkar (Dublin West, Fine Gael)
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In 2012, my Department engaged with an expert from the UK NHS (Mark Ogden) to examine the financial management of the Health Service Executive and make recommendations regarding strengthening and improving the management of its finances. Subsequently, PA Consultancy was engaged to undertake a wide-ranging review of financial management and cost containment systems in the health service, including an assessment of the Ogden Report and the preparation of an action plan for the implementation of its recommendations.

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 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.

One of the early outputs of the programme was the development of a new operating model for finance in health. The HSE has submitted a business case for the new operating model to the Department of Health and the Department of Public Expenditure and Reform. The Business Case defines the case for change and scope as well as providing an estimate of the resources required to deliver the new operating model and supporting technology.

Work is progressing on the Finance Reform Programme on a number of important work streams including securing agreement of the procurement approach for an Integrated Financial Management System.

The new financial operating model will greatly enhance the health sector's ability to effectively manage and monitor its budget at all levels.