Health services facing 5% cut

PATIENTS in Clare can expect further significant cutbacks in health service expenditure as part of national cutbacks to achieve savings of €1 billion.

Health Service Executive (HSE) Forum West members were told that the authority had received an indicative figure of €100 million to cut from health expenditure for the entire region, stretching from North Tipperary up to Donegal.
Regional director of operations, John Hennessy, warned that in advance of any further cut in funding after the Government’s Budget on December 7, the current projections indicated that 5% would be cut from overall spending in hospital and community services in every county.
Mr Hennessy explained the measures introduced to curb spending during 2010, which was a difficult year, would have to continue in 2011, as the authority tries to cope with an even smaller overall budget.
Assistant national director of finance, Liam Minahan, revealed the authority had delivered substantial savings as a result of the national recruitment ban, had made progress reducing absenteeism, made a €4m saving on overtime payments and is looking at ways to reduce the cost of agency staff to 2009 levels.
He predicted that extra income would also be realised as a result of increased charges, which would boost income generation.
Mr Hennessy confirmed the current projected overspend for the entire HSE West area was down from €39m in the September accounts to €32m.
This reflects the continuing pattern of improvement month on month and the effectiveness of the control measures that are being implemented in each service area.
He outlined the net expenditure in hospitals has been reduced by  €6.4m for the month of October compared to May. Pay expenditure has been reduced by €2.6m when the two periods are compared, while non-pay was cut by €3.5m.
The net expenditure in community services has reduced by €4.8m for the month of October compared to May. Pay expenditure fell by €0.7m and non-pay expenditure dropped by €3.7m.
“While this is a very welcome improvement, HSE West must continue to focus on reducing expenditure every month in order to break even at year end.
“Like every other public service organisation, we have to live within the budget allocated for 2010 while delivering the level of service set out in the 2010 Service Plan.  This is necessary to protect health services in the long term,” Mr Hennessy said.
“Each of the hospitals and local health office management teams are continuing to work on cost containment measures in conjunction with clinicians and staff representatives.
“Productive and innovative ideas such as reduced hours, career breaks, revised rosters, reconfiguring services have been put forward to minimise the effect on frontline services for patients and lessen the number of temporary staff reductions, while keeping the budget expenditure on target,” he added.
He stressed there would be no compromise on the safety and quality of the services provided; frontline services would be protected wherever possible by targeting corporate and backroom functions and insisted hospitals and community services must manage within the budgets allocated.