The Health Service Executive (HSE) said today that it spent all its capital budget allocated for buildings and equipment last year, unlike in other years when millions were left unspent at the end of each year and had to be returned to the Exchequer.
Prof Brendan Drumm, the HSE's chief executive, made the announcement at the publication in Dublin of the HSE's annual report for 2007.
Last year there was considerable criticism of the HSE after its 2006 annual report revealed the executive had failed to spend €97.7 million that was allocated to it by the Government for new developments and facilities that year.
While some €20 million which was set aside as capital funding for information technology in the health sector last year was used to offset the HSE's deficit of €255 million in 2007 Prof Drumm claimed that capital money was "different". It could not be spent without having a comprehensive IT plan in place, he stressed.
Meanwhile, the HSE's latest annual report indicates there were significant increases in activity in its hospitals last year compared to 2006. The number of inpatients treated was up 3.7 per cent to 614,291; the number of outpatient attendances was up 5.1 per cent to just over 3 million; and births rose by 11.7 per cent to just over 70,000. This was the highest number of births recorded in the last 25 years.
Activity is continuing to increase this year and the HSE at this stage has overspent its 2008 budget by €100 million, Prof Drumm confirmed. He said various cost containment measures will be pursued to offset the deficit. Money spent on travel and training programmes will be restricted.
The chairman of the HSE board Liam Downey said when the HSE looked at cost containment measures the last thing they looked at was service cuts.
He went on to say the HSE had made good progress during 2007 on its health service reform agenda. "This involves a variety of initiatives including reconfiguration of services to deliver better quality, changing work practices and better measurement and monitoring of outputs in order to improve services for patients. While much of this is difficult and challenging to implement we have established a clear direction and platform for change in many important areas," he said.
The annual report also points to the significant pressures put on the system by a growing population. "Some 4.34 million people live in the Republic of Ireland. This is an increase of 106,100 on 2006. The HSE must address the challenges arising from this growth in population and respond appropriately to the health needs of all, including new and well-established minority communities," it says.
"The high percentage of young people coming into the country has increased pressure on areas like maternity services. At one of the country's largest childrens hospitals one in every six attendances annually to the outpatient department is from ethnic minorities," it adds.