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Most of the €1 billion needed to be saved by the health sector in 2010 is coming from slashing staff pay rather than curtailing services further, writes EITHNE DONNELLAN

THE CUTS IN health service funding for next year had been well flagged. In August, the Department of Health instructed the Health Service Executive (HSE) to draw up plans to cut spending by up to €800 million in 2010 which prompted initial suggestions within the HSE that this could not be contemplated without closing some small hospitals. The following month the Minister for Health Mary Harney said 2010 would be “the most challenging year ever from the perspective of financing the health service”. And in November she made it clear the Government was looking at implementing cuts “of over €1 billion” in health next year.