HSE warns €14bn budget for 2017 may not be enough

The Health Service Executive has warned the Government its budget for 2017 may not be sufficient to meet all the competing demands, including replacing ageing medical equipment and costs of new drugs.

The Cabinet will today consider the HSE’s Service Plan for 2017 and how it intends to spend the €14 billion allocated to it.

Minister for Health Simon Harris will publish the plan later this week and will also announce he intends to set up a new working group in the Department of Health to examine potential ways of establishing a new drugs fund for Ireland.

The director-general of the HSE, Tony O’Brien, has warned of a number of significant risks to the delivery of services next year. He advised there may be difficulties in controlling pay and staff numbers and balancing those costs with specific “safety, regulatory, demand and practice-driven pressures”.

In his introduction to the service plan, seen by The Irish Times, Mr O'Brien also advised the number of people availing of medical cards will be a challenge.

“There are a number of risks to the successful delivery of National Service Plan 2017. While every effort will be made to manage these risks it may not be possible to eliminate them in full, and they may impact on planned levels of service delivery or achievement of targeted performance.”

Management focus

Particular management focus will be required in a number of areas, Mr O’Brien said, including increased demand for services.

The HSE director-general advised the organisation needs to invest in infrastructure including replacing ageing medical equipment and meeting the demands for new drug approvals.

However, he admitted it will be a struggle to do so within the funding levels allocated by the Government for 2017.

Mr Harris has insisted the budget allocated to the health service is the largest in the history of the State. He said the HSE’s 2017 allocation is an increase of €458.6 million and is a reflection of the Government’s commitment to “placing the health service on a sustainable financial footing”.

However, Mr O’Brien warned it may not be sufficient to address the demands of the service or the requirement to modernise.

“The health service continues to deliver its services in an environment where the population is growing, the number of people seeking to access services is higher than ever before and where public expectations for quality services continue to increase,” he said.

“There will be an ongoing and significant management challenge to balance demands and needs within the funding available to the HSE,” he added.

Era of investment

Speaking in Co

Donegal

on Monday, Mr Harris insisted this was the beginning of an era of reinvestment in health and the delivery of services.

Under the plan €4.4 billion will go towards hospital services, with €3.8 billion earmarked for primary care.

A total of €3.3 billion will be spent on disability and services for older people while €853 million will go towards mental health services.

It is not expected that the HSE service plan will contain specific funding for the extension of free GP services.

However, it is understood the Department of Health has retained some money in its own budget for next year to facilitate the negotiation of a new contract with GPs – an essential component to the plans for extending free GP care.