Shortfall in UK payments to health service amounted to €55 million, Minister says

The health service received € 55 million less in payments from the UK government than had been originally anticipated when the HSE budget was drawn up last year, the Minister for Health Simon Harris has said.

Mr Harris also told the Dáil on Tuesday that the HSE now expected that about €80 million would be generated in savings under a value improvement programme which was intended to realise nearly €350 million.

The Minister also said that Storm Emma last March, which led to widespread snowfall across the country, cost the health service about €40 million.

Mr Harris was replying to questions posed by Fianna Fail health spokesman Stephen Donnelly about the estimated €700 million overrun in health spending this year.

Call for compulsory flu jab for care staff in high-risk hospital areas

---

Nine different plastics found in human stools, research shows

---

Warning to Irish doctors as US children hit by polio-like condition

---

No cause for alarm but check your child’s polio vaccination up to date

---

Mr Donnelly asked whether the HSE had advised the Minister in late 2017 or early 2018 that it was facing a significant overrun and what steps he had taken to address this situation.

Mr Harris said a number of areas within the HSE were contributing to the overspend in 2018.

He said these included higher payouts under the State Claims Agency, a shortfall in private patient income, a higher level of spend in the acute and disability services sectors and the additional costs associated with Storm Emma.

He said the overspend in services was driven by the non-achievement of planned savings, higher levels and higher complexity of demand, costs associated with meeting national regulatory standards in the disability sector and the need for additional emergency placements for children and young people with disabilities.

“Finally and importantly, an amount of €280 million was provided in the 2018 revised estimates for appropriations-in-aid receipts from the UK in respect of healthcare provided under EU regulations. These receipts are now estimated at €225 million, leaving a shortfall of €55 million against the provision.”

UK health system

The health service in Ireland receives significant funds annually from the UK under an agreement that allows health authorities here to receive payment for the cost of providing treatment to people covered by the UK health system but who are staying or residing in Ireland. These are mainly pensioners, temporary visitors or dependent families of workers.

Mr Harris said in presenting its 2018 national service plan in late 2017, the HSE had ”conveyed its view of what it saw as the significant financial challenge of implementing the plan within the allocated budget for 2018”.

“This was not a secret; it was published on pages two and three of the national service plan. In response, I confirmed to the HSE that the plan was to be framed having regard to the funding available. The health sector was but one of several priority areas competing for additional funding in 2018 from the fiscal space available to the Government.”

Mr Harris said given the significant allocations provided to the HSE in 2018 and in previous years, it was clear that “issues of budgetary performance need to be addressed in certain areas and that the HSE should discharge its accountability in this regard under the performance and accountability framework”.

Health committee

Meanwhile the HSE is set to tell the Oireachtas health committee on Wednesday that by the end of August it had spent €485 million or 5.1 per cent more than its official budget for the first eight months of the year.

In an opening statement to the committee, HSE chief financial officer Stephen Mulvany says 43 per cent or €206 milllion of this €48.5million overrun related to “unfunded cost growths, in 2018, that are outside of the areas of spend which are amenable to normal management control efforts or relate to exceptional costs such as those associated with Storm Emma”.

“This includes primary care reimbursement service €50 million, State Claims Agency €32 million, local demand-led schemes/overseas treatment €24 million , pension €9 million , acute hospital income issues related to the actions of insurers €63 million and exceptional items, including Storm Emma, €28 million.”

Mr Mulvany said 37 per cent or €180 million of the €485 million overrun recorded to the end of August related to “a target shortfall in the savings necessary to offset the unfunded costs of services that were running throughout 2017”.

However, he said €37million in savings under the value improvement programme were reported by community health care organisations and hospital groups at the end of August.

“This figure is indicated to be circa €40 million in savings by year end. In addition to this there are significant centrally-generated drugs and medicine related savings being delivered by the primary care reimbursement service, for example €27million on a clinical protocol driven access initiative and acute hospitals €12million on the framework agreement with suppliers”.

“ Finally, 20 per cent or €99 million of this €485m overrun relates to other unfunded cost growths, in 2018, within our operational service areas.”