THE HEALTH MINISTER Stephen Donnelly has today said that the focus of the health budget for 2024 is “running the services we have, driving down waiting lists, and stabilising emergency departments”.
The Minister defended the health budget for the next year, which medical organisations have said does not go far enough to meet increasing demand on the HSE, by pointing out that it comes after three years of “record investment” into health services by the state.
Budget 2024 sets aside €22.5 billion for health services, which is overall just over €1 billion more in additional funding compared to last year.
This funding boost breaks down into an extra €808 million in core funding, and €282 million in non-core funding.
The cash injection into the health service comes as the HSE is in a spending overrun on this year’s budget, which is forecasted to amount to €1.1 billion by the year end, and means that a supplementary budget for this year will have to be delivered.
Medical organisations including the Irish Hospital Consultants Association (ICHA), the Irish Medical Organisation (IMO) and the Irish Nurses and Midwives Association (INMO) has said that the budget for 2024 does not go far enough.
The Irish Medical Organisation called the budget a “missed opportunity” to invest in our health service “to meet the needs of our population”.
A spokesperson said that the additional core funding increase is unlikely to “maintain additional services” let alone “meet increased demand from a rapidly growing and ageing population”.
The Irish Hospital Consultants’ Association said that the €1.23 billion of planned capital funding announced in the budget would not be enough to address “the demographic factors increasing the demand for care”.
Previously, the IHCA stated that at least €4 billion would be needed for the delivery for a range of infrastructure promises Donnelly has made – including 1,500 rapid-build hospital beds, four elective hospitals and six surgical hubs.
Addressing the concerns of these groups today, and on being asked why there is no string of new measures for investment in healthcare in Budget 2024, Donnelly said that the budget is still “substantial”.
“It is still a €2 billion euro budget,” he said.
Asked if he believes that trolley waiting times will be reduced over the next year, Donnelly said he believed there will be “progress”.
“Access is the single biggest priority, within the €2 billion for next year, is a very sizeable investment in hospital waiting lists, community waiting lists, and trolleys.
“We do need more capacity. That’s why we have been so grateful for the Government’s support in so many budgets.
“We are in the middle of a massive and much needed investment in hospital capacity, but that is only half of the solution,” Donnelly said, adding that medical groups need to fully engage on “reforms” such as changes to rosters, and integrating services.
The Department of Expenditure had to delete a tweet which stated that a promise of 2,500 new beds was one of the measures being rolled out in this year’s health budget, as it was already a pre-existing commitment.
Making savings in light of HSE deficit
The Minister said that the main driving factor behind the HSE’s overspend is an increase in outpatient referrals – which have gone up by 16% in the last year – and an increase in the cost of medicine.
“We can’t kid ourselves. The additional spending by the HSE forecast for this year at about 1.5 billion euro is largely being driven by the fact they are treating more patients than we have funded them to treat.
“And they’re having to spend more money on medicines than they are funded to spend because the price of medicines has gone up. So that has nothing to do with productivity.
“However, there is an element – let’s call it the remaining third – that we are going to identify through productivity,” Donnelly said.
The Minister said that alongside HSE CEO Bernard Gloster, he is working to set up a productivity workforce. He also promised that an integrated financial management system for the HSE will be rolled out.
He said that the centralisation of medicine and equipment procurement is another area where money can be saved.
Donnelly added that hiring freezes for staffing areas where annual targets have been met is another way the HSE aims to save money over the next year.
“If I’m going to ask Government, and if Government is going to ask the Irish people for ongoing big investment in Irish healthcare, which I absolutely believe we need, we must also be able to show exactly where that is and that it is being used effectively,” he said.
Donnelly confirmed that there is no new investment in the funding for procuring new medicines, and that a meeting will be held with stakeholders to see where costs can be cut in this area as well.
The Minister said that in terms of overspend, acute services is the only area that is operating significantly beyond its budget.
He explained that a “post Covid surge” in patients visiting EDs has contributed to this, and recognised that staff working in these areas are “doing the right thing” by providing more treatment that the services funding allows for, because patients “cannot be turned away”.
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