Next year will be the most challenging year ever from the perspective of financing the health service, Minister for Health Mary Harney said today.
She made it clear the level of spending cuts in 2010 would be “considerable”.
The Government, she said, had announced it would take €3 billion out of current expenditure next year and, given that health accounted for such a large proportion of annual expenditure, the cuts would clearly impact on the health service.
“It will be the most challenging year ever from the perspective of financing the health service. There is no doubt about that. We are living in very difficult times.”
Ms Harney said she was determined to maintain as many services as possible.
“Therefore, we have to look at the cost of providing services in the first instance. They are very high in Ireland in comparison with other countries.”
She indicated everything was on the table for discussion, including public sector pay cuts, when it came to considering how to make savings in the run-up to the budget.
She said the Health Service Executive has already been asked to draw up plans to cut spending by €800 million next year, and it was also facing pressures such as the cost of extra medical cards and demographic changes which could cost €400 million.
She added that €1.2 billion of the €7 billion health service pay bill goes on overtime and premium payments each year and there may be potential for savings in this area by doing things differently.