PAYMENT SAVINGS:FEES TO a range of healthcare professionals including GPs, pharmacists, dentists, opticians and chiropodists are to be cut by about 8 per cent to help the Government reach its target of achieving €2 billion in savings this year. Lawyers who are paid legal fees by the State will also receive less as a result of cost-saving measures outlined in the Government's recovery strategy.
Making the announcement yesterday, Taoiseach Brian Cowen said €80 million would be saved “through a general reduction of the order of 8 per cent in all professional fees, for example in the legal and medical areas”.
The State spends €1 billion every year on a range of professional services across all departments.
A spokesman for the Department of Health said the intention was to cut payments to those professionals administering services to patients under the medical card scheme and other such schemes.
He said the changes would require legislation so there was no precise timeframe for the changes to come into effect. There will also be a process of consultation with the professionals involved, he confirmed.
The Irish Medical Organisation, which represents GPs, wasn’t commenting on the move, fearing any discussion of fees paid to members might put it in breach of competition legislation. However, the union is unlikely to be happy about the prospect of a further cut in fees as GPs collectively had their capitation payments in respect of treating over-70s cut by €16 million in the recent Budget.
Fintan Hourihan, chief executive of the Irish Dental Association, said it was regrettable that the changes hadn’t been flagged in advance with his members. He said the current payments to dentists who treat medical card patients don’t actually cover the cost of treatment and this had led to an exodus of dentists from the medical card scheme. “Unfortunately it is likely to cause an increase in the numbers leaving the scheme which is going to have consequences for patients,” he said. “This should be seen for what it is – which is a further rationing of services for those most in need and those who can least afford it.”
The Irish Pharmacy Union (IPU) said it hadn’t been advised of the changes but pharmacists recognise the current difficulties facing the exchequer and the IPU is prepared to work with the Minister for Health to play its part in charting a way forward.
Lawyers who represent the State in legal cases and those who are hired on a consultancy basis will also be affected by the reduction in fees.
Of the €1 billion the State spends on professional services annually, it is understood to pay about €200 million to barristers and solicitors every year.
The Law Society’s director general, Ken Murphy, said there was “a recognition from the Law Society that there is pain sharing required of everyone and we would expect the legal profession to play its part along with everyone else in that”.