Written answers

Wednesday, 21 October 2015

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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131. To ask the Minister for Health the sources of the additional €131 million non-Vote income to be collected by the Health Service Executive in 2015; the sources of at least €130 million saving to be achieved by the Health Service Executive, each in tabular form; and the amount of each that has been realised so far in 2015 [36804/15]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The approved level of non-capital expenditure for the HSE in 2015 was to be supported by the collection of an expected €131 million of outstanding private patient fee income.

Negotiations are ongoing with private health insurers in relation to reaching agreement on a Memorandum of Understanding which will address this outstanding debt issue by introducing better payment terms and improved cash collection for the HSE.

In relation to the second questions, specific savings and efficiencies of €130 million were identified by the HSE in the areas of procurement, generic drugs, reference pricing, clinical audit and agency costs and built into the Estimates for 2015. These savings are set out in the following table.

Description€m
Procurement Savings (including drugs and medicines prices)95
Targeted reduction in agency and overtime costs30
Savings within acute hospitals associated with clinical audit and special investigations5
130
It is expected that by year end, the HSE will have generated aggregate saving in excess of €80 million under these headings, including €30 million savings in procurement costs, €25 million savings associated the ongoing implementation of generic substitution and reference pricing and €25 million savings in agency costs. Significantly, these and any further savings made before year end will go back into the development and delivery of services and will not be used to reduce the Exchequer provision

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