SECRETARY GENERAL of the Department of Health Michael Scanlan has expressed surprise at the contention of the Health Service Executive (HSE) that it has very little scope to introduce further value-for-money measures.
In a letter sent to the chief executive of the HSE, Brendan Drumm, a fortnight ago, he said that notwithstanding the reduction in the rate of non-pay costs achieved by the health authority, he would have expected, for example, that additional savings could be made on procurement.
He also said he was surprised to note that no financial savings would be realised in 2010 from service reconfiguration. The Irish Times revealed last month that the HSE, in a confidential submission to the Department of Health on spending plans for next year, had argued that repeating efficiency measures introduced over the past two years would be very challenging and “it is difficult to see further expenditure reductions as a result of the value-for-money programme”.
The Department of Health had asked the HSE to draw up plans for saving up to €800 million next year.
In his letter to Prof Drumm, the Department of Health secretary general said: “I would have expected, for example, that the HSE’s development of its procurement expertise and the economic environment are such as to allow for a more ambitious target in this area amongst others.”