Health service recruitment freeze to be extended in response to budgetary pressures

A recruitment freeze is being introduced in parts of the health service to address massive overspending in the sector.

In a further cost-saving measure, there will be no dedicated funding for new drugs next year, Minister for Health Stephen Donnelly has announced.

Some 162 new hospital beds will be opened next year, along with 22 critical care beds, Mr Donnelly told a press briefing on the health aspects of Budget 2024 on Wednesday.

The Health Service Executive has said it expects to incur a €1.5 billion deficit by the end of the year, due mainly to inflation and increased patient demand. The overspend has severely curtailed the amount available next year for new developments.

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Mr Donnelly said the majority of the overrun was due to the cost of treating the increased number of patients seeking care. Referral to outpatients waiting lists are up 16 per cent, he pointed out.

The freeze in place on the recruitment of HSE managers and administrators is to be extended to areas where annual recruitment targets have already been met.

Mr Donnelly declined to specify which areas will be affected, saying it is a matter for the HSE.

“In spite of all this investment we have a long way to go in providing people with the health services they need and should have,” he acknowledged. “Waiting lists are still far too long, in spite of the progress made and this causes enormous difficulties for patient.”

Speeding up access for patients will be his number one priority, he said.

Funding will also be provided for six surgical hubs, extra training places for health professions and improved patient access to waiting list initiatives.

Eligibility for free contraception is being extended to women between the ages of 17 and 31, and additional funds will be provided for e-health measures The total increase in the health budget is more than €2 billion, Mr Donnelly said. This comprises an additional €808 million in core funding, €1.032 million in noncore funding and €156 million in capital funding.

The total health budget for 2024 will be €22.5 billion, the largest ever.

The additional core funding includes €708 million to pay for existing services and €100 million for new measures.

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Mr Donnelly pointed to the role of inflation, rising patient demand, workforce costs such as wage agreements and increased legal claims as factors in absorbing most of the extra money.

The €1 billion in noncore funding relates to spending on Covid-19 vaccines, services for Ukrainian refugees, waiting list plans, cybersecurity and non-pay funding pressures expected to recur in 2024.

There is no dedicated funding for new medicines next year, but any savings made in the area will be immediately reinvested, Mr Donnelly said. Up to €100 million were provided for this purpose over the last three years.

Savings will be pursued through greater use of generics and biosimilar drugs, he explained.