New system to manage HSE finances is a ‘priority’, Reilly says

Report criticises health service financial management over accountability and technology

A new integrated system to manage the finances of the Health Service Executive is the body's "single most important non-clinical priority this year," the Minister for Health has said.

Minister for Health James Reilly was responding to a parliamentary question from Sinn Féin TD Caoimhghin O Caolain about a report which looked at how to change the financial management in the HSE.

The PA Consulting Group's report is critical of the current financial management systems in place. , including the the "extent of financial management activity being supported by teams with no direct accountability or responsibility" to the Chief Financial Officer.

It says “significant under-investment in technology” has “ compromised the ability of finance to improve current working practices”.

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It also finds “inconsistency in the level and standards of service provided to different customer groups across the system”

The report estimates that the cost of the supporting core finance in the HSE is €74m. This includes processing payroll, managing cash and approving invoices

The September 2013 report contains a “roadmap” to allow delivery of an “efficient and effective financial service to meet the HSE’s changing requirements, Dr Reilly said in his parliamentary question response.

Dr Reilly said the Department of Health was considering the business case for bringing in a new financial model. Details have also been forwarded to the Department of Public Expenditure and Reform, he said.

Full report can be found here.

Genevieve Carbery

Genevieve Carbery

Genevieve Carbery is Deputy Head of Audience at The Irish Times