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Dublin: 16 °C Tuesday 21 May, 2013

Ireland’s health spending among highest in OECD

As a portion of the government’s income, Ireland’s health spending is higher than many of the world’s developed countries.

Image: Laura Hutton/Photocall Ireland

IRELAND’S GOVERNMENT SPENDING on its health care ranks among the highest of the OECD nations as a portion of its national income, according to a report published by the government yesterday.

The government’s 2011 Health at a Glance report showed that Ireland spent 11.4 per cent of its gross national income on its healthcare – ranking 6th out of the 27 countries for which details were available.

Those figures, based on 2009 government income and spending, showed that Ireland spent €3,781 per capita on health provision – with an average of €2,836 being spent providing public healthcare for each man, woman and child in the country.

As a percentage of GDP – the total size of the economy – Ireland’s spending was less impressive, at 9.5 per cent – putting Ireland in 17th place of the 34 countries included in the data.

The USA ranked highest, spending 17.4 per cent of its GDP on healthcare provision – while Turkey ranked lowest, with health spending equivalent to 6.1 per cent of its economy.

The report also showed that the government spent €126.3 billion on healthcare provision in the decade between 2002 and 2011, with spending up by two-thirds in 2011 compared to 2002, even despite successive austerity Budgets.

Government health spending peaked in 2008, when Ireland spent over €15.5 billion of its public funds on health, including just under €600m on capital spending.

Health spending was just over €14 billion this year, and is set to stand at around €13.6 billion in 2012.

The report elsewhere underlines some interesting trends about the lifestyles enjoyed by Irish people – with the data showing that average tobacco intake has fallen, but alcohol intake has risen, in the last ten years.

Read: Ireland’s vital signs: The nation’s health over the last decade

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Comments (27 Comments)

  • Scrap the system and start fresh. No old fogies

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    • Have to agree. Privatize the system, as the public sector and unions have proved they cannot run a health system.

      There would still be a public health service. But it would be the cash segment only. So the state (tax payer) would pay a private hospital for each patient, money follows them.

      Not the nonsense black hole of a system that is the HSE.

      Reply
  • Ya but salaries, consultancy fees and other costs are way much higher. Plus an inept system of not getting value for money.

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  • Just goes to show how much waste and overpayment is there in the system.

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    • Or, it goes to show what a small tax paying population we have… All depends how you read the report. Also, this is bad news for budgets, as it will be used to prevent more spending in the health dept.

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    • @P Wurple: Have you ever visited any of the Baltic states … all populations much lower than ours, and yet they have health services that you would ‘die for’, excuse the pun ….. Your argument doesnt hold water, and is typical of the denial our publicly paid servants put out about all sorts of issues that criticise any aspect of the overall sectors.
      We need to take a new approach …FG promised us this, and the first thing they have done is close smaller hospitals and care cenres … The problem is not the smaller centres, its the labour cost assciated with the overall Health Service budget .. We pay our consultants on average 4 times what they get paid in the North of Ireland , and 7 times what they are paid in Latvia and Lithuania …. Our Hospital directors are also paid an extortionate salary versus their equivalent sized countries in the Baltic … We must start comparing apples with apples and address the real issues…. Our labour overhead is much too high and its not a grass roots issue. Once you start into the higher grades in any part of our public or civil service, you realise that we are paying 2-3 times the european average. If we were paying the equivalent rates as are paid in equivalent sized countries in Europe, we could hire a lot more front-line staff, while still reducing the overall cost of the health service, and at the same time, mke it many times more efficient … or am i missing something ???

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    • Cal
      You’ve said it all!
      Nothing more I can say here.

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    • P Wurple 20/12/11 #

      Cal, cookoo-land may be calling. The Latvian healthcare system is ranked as the worst in europe by the European Health index. Very bottom of the table.

      They have the worst access to treatments, with the longest waiting lists and also the poorest access to pharmacy.

      What criteria did you use to evaluate it?

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    • @P Wurple : Ireland has the worst A&E wait times in Europe …

      http://www.breakingnews.ie/ireland/ireland-bottom-of-euro-table-for-health-service-waiting-times-330224.html

      Other aspects of the service may be better than some other countries …. But tell that to someone who needs A&E care … And it will get worse in 2012, based o how FG/Labour saw fit to close some more A&E facilities since being elected.

      Let me see your data please to counteract this.

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    • P Wurple 20/12/11 #

      No need to contradict it. Irelands emergency care is bad I completely agree.

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  • Probably goes all to consultants and admin! Instead of having more nurses and doctors and better hospitals with more beds. When you start cutting down on your public health system this is the day you start cutting down on people life expectancy and quality of life.

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  • Yes the health service in Ireland really needs to be reformed. Although many previous governments have tried to do so. Consultants and doctors fees are to high. Everyone should be entiled to a good health service. Not only those that can afford it. It is a human right.

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    • Doctors, supply and demand salary. Worldwide shortage of doctors.

      I think you’ll find that the money is soaked up by having 30+ porters in hospitals, too many layers of management, tons of admin staff. Very high sick days and unchecked expenses claimed across the HSE at all levels.

      Doctors and nurses should be praised. Having admin staff and porters that run to their shopstewart on every request is crippling the HSE.

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  • We pay the most for the worst health service, that seems about right.
    Middle management and consultants are the problem. Dr death Oreilly will either have to stand up to this lot or join the last health Minster with blood on his hands.

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    • How are consultants a problem? Surveys reported over the years have all highlighted the lack of consultants relative to other advanced European countries. The real problem is the lack of specialist consultants and I gather that the lack will become much more acute after March 1st when the full extent of consultant retirement will be known. It is quite typical by now of the cackhandedness of health policy and government policy that consultants are incentivised to retire rather than stay on. And none of them will be retiring with the lottery sized packages awarded various senior civil servants. A health service with hardly any doctors and nurses but enough pen pushers to choke Croke Park. A fitting indictment government policy in all areas.

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  • not that difficult to solve. firstly introduce a proper Information technology system. this will reduce the need for the admin staff and managers required and reduce the needless paper work involved. it is 2011 after all and the technology is there. information can then be easily accessed. next have proper a&e departments in the smaller hospitals and reduce the load on the larger ones. then the consultants need to be put in their place and told that the patient is the number 1 priority. not their salary. finally the money saved can then be used to hire much needed front line staff and provide more beds.

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  • The system is too complex i have been told by friends who work in the system as consultants. Layers of complexity and islands of bureaucratic autonomy have grown up. Any time you have a company run by committees at every level, you get bad management practices and inefficiency.

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  • Not as easy as you thought is it Mr O’Reilly ????

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  • I worked in a hospital for a time as a clerical officer, there was 6 of us doing a variety of admin work . Including a ‘supervisor’ who also worked along side us. By the time I left in my area alone, there was 13 clerical, 2 grade five supervisors, a deputy business manager, then a business manager, all of whom proceeded to instruct us. One of the reasons I left was too many bosses! There are literally thousands of middle management in the HSE all overlapping and all doing the same work. Every consultant has their own secretary, every department then has a department secretary,every area has a business manager and every business manager has a deputy.

    Nurses are fleeing this country in droves the effect will be seen next year as shortages will cause even more wards to close and procedures to be halted.
    And you think Our health service is on it’s knees now!

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  • For a moment I thought this was a good news story until I read the heading properly.

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  • Problem is we’re in a lose ,lose situation… Administration costs are of biblical proportions ( both large and unbelievable) and fee’ s are stratospheric but if you cut admin jobs( which need a severe haircut) you have more social welfare recipients and if you cut fee’ s there will be dissent amongst the elite , who finger puppet government and yes I want you to imagine the elite doing a Bosco on our so called representatives.

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  • Not surprising, as we have a really tiny population paying taxes. People here seem to expect the same service as the NHS next door. Even though the UK for example has 62 million people, with about 30 million taxpayers, and we have only 4 million people, of whom about 1 million pay tax.

    I am not saying there isn’t waste, but as there are some enormous capital costs in health, (building a basic hospital, diagnostic equipment, radiation equipment for cancers etc) you could still spend the entire tax take here on health and never get near the service levels in other places.

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    • Taxes and money given to health services are not the problem. You only have to look at the list of failed projects, high ratio of managers and admin staff and use of non accountable consultants to see where problems lie.

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  • From reading of the report there has been a decrease in non clinical staff numbers, and for the most part improved health status for the population. It seems money has increased and it has led to some improvements – I’m sure it doesn’t tell the whole story but objectively, it looks like ireland has a world class service in some respects.
    Subjectively though, everyone wants a world class a&e in every county, staffed by doctors working for minimum wage, one manager for everything and unions abolished! And of course there is always the beat up by the politician who has to be seen to fight the cutbacks so their local services can be spared.
    To all those saying ‘tear up the system and start again’, exactly what is the better system you’re referring to?

    Reply

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