Eamon Scanlon (Sligo-Leitrim, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

25. To ask the Minister for Health his estimate of the likely overrun in the health budget in 2016; the status of the financial situation of the Health Service Executive; and if he will make a statement on the matter. [13800/16]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Significant additional resources have been made available to the HSE in 2016. Despite this, the health sector is facing challenges in managing expenditure within budget in some areas. The HSE's financial information for March, the latest available, shows net expenditure of €3,284 million against a €3,164 million profile, resulting in an overspend of €120 million for the three months. The acute hospital sector deficit of €81 million represents 68% of the overall deficit. Other significant deficits arise in respect of the State Claims Agency of €17 million and Social Care of €21 million.

The HSE has established seven cost management groups to develop short and medium term actions to address specific areas of financial challenge across the acute hospital sector. These groups are expected to report their findings in the coming weeks. Patient safety and maintenance of service levels are key objectives to be satisfied when establishing savings measures.

The nature of the State Claims Agency scheme means that determining trends and projections from three months' data is not conclusive. Pressures in the social care area arise from costs associated with compliance with disability standards and meeting demands for home care packages and home help.

With only three months of data, the ability to determine expenditure trends and derive a projected outturn is limited. The Department of Health will continue to work with the HSE to ensure that every effort is made to maximise cost containment and cost avoidance measures to mitigate any overruns to the greatest degree possible.