Minister for Health Stephen Donnelly has defended the overspend in the health budget, saying it was down to an increase in outpatient referrals and more expensive medicine costs.
He said the funding it has been allocated is being used “effectively”, but added that “more can be done”.
It comes after an overspend in the Department of Health was flagged as a pinch point ahead of Budget 2024.
Mr Donnelly said there was a 16% increase in outpatient referrals this year which had not been projected, and that similar increases had been experienced elsewhere in Europe.
He added: “We can’t kid ourselves. The additional spending by the HSE forecast for this year at about 1.5 billion euro is largely being driven by the fact they are treating more patients than we have funded them to treat.
“And they’re having to spend more money on medicines than they are funded to spend because the price of medicines has gone up. So that is nothing to do with productivity.
“However, there is an element – let’s call it the remaining third – that we are going to identify through productivity.”
He said a productivity taskforce would be set up by his Department and the HSE that would largely examine the acute sector.
He said that there would be an integrated financial management system rolled out next year, with an extra 40 million euro being provided to accelerate that plan.
He added: “The mental health services, the community services the social and inclusion services, they’re not over (budget).
“We’re over on things like state claims and some pay things like pensions, but in terms of service provision, the only area that is over in the HSE this year is the only area that cannot turn patients away.
“So they are doing exactly what they should do – they’re treating the patients, they’re spending the money.”
He said: “If I’m going to ask government, and if government is going to ask the Irish people for ongoing big investment in Irish healthcare, which I absolutely believe we need, we must also be able to show exactly where that is and that it is being used effectively.
“The vast majority of it, can be seen, the vast majority of it is being used effectively, but is there more that can be done in terms of cost controls, financial management, productivity? Yes I believe there is.”
