David Cullinane (Waterford, Sinn Fein)
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1790. To ask the Minister for Health the purpose of maintaining section 38 hospitals; the operational and governance differences between HSE hospitals and section 38 hospitals; if he envisages the creation of any new section 38 Hospitals; the typical ownership arrangements for assets used by section 38 hospitals; and if he will make a statement on the matter. [35511/21]

Stephen Donnelly (Wicklow, Fianna Fail)
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An Independent Review Group (IRG) was established in August 2017 to examine the role of voluntary organisations in the provision of health and personal social services and to make recommendations on the future evolution of their role. The Group’s report was published in February 2019. Amongst its findings, the report noted the fact that voluntary organisations in general have a governing board, which the IRG viewed as providing a direct level of corporate governance through accountability of management to the Board, and bringing a level of governance oversight to the operation of organisations.

While recognising the value that voluntary organisations continue to bring, the report also highlights the need for robust processes to ensure that public funding is appropriately accounted for and that all publicly funded organisations are compliant with sound financial practice, good corporate governance and meet the needs and expectations of the public in respect of the type and quality of services provided. In this respect, the HSE enters into detailed annual service level agreements with all Section 38 and 39 organisations that it funds.

The IRG report also examined the situation in relation to the ownership of assets, and in particular the appropriate protection of State investments. It notes that, in the past, there was a significant level of cross subsidisation between the State and voluntary organisations which was done on an ad hoc basis, but that since the creation of the HSE in 2005, it is a requirement that the State takes a charge on all capital investments it funds in voluntary organisations.

In the context of the proposed relocation of the National Maternity Hospital (NMH) to the Elm Park campus, the Mulvey Agreement, which was finalised in 2016 following an extensive mediation process between the NMH and the St. Vincent’s Healthcare Group, provides for the establishment of a new company - National Maternity Hospital at Elm Park DAC – which would provide services at the new NMH under section 38.