Pay cutbacks as HSE overspends by €145m

The finances of the Health Service Executive are to come under fresh scrutiny as it has already overspent its budget by €145m in the first quarter of 2012.

Health Minister James Reilly has ordered a high- level review of expenditure control systems within the HSE following the overshoot of its spending levels.

Dr Reilly has also indicated that HSE staff will face cutbacks in overtime, allowances and premium rates which are currently costing €800m each year.

The minister said yesterday that the HSE could not consider cuts in services for patients without addressing the amount spent annually on overtime and allowances for doctors, nurses and other staff.

“It is the elephant in the room,” remarked Dr Reilly.

He pointed out that 70% of the HSE’s annual budget of €14bn goes on pay, of which 18% is linked to overtime and allowances.

A British health expert began work this week on examining how the HSE manages its annual budget and to seek better efficiency in its financial system.

Mark Ogden, who is the deputy chief executive and director of finance of Britain’s National Health Service’s north of England division, is due to complete his review within a month.

“The message to the HSE is very clear — they have to get their books in order. We need clarity around the figures,” said Dr Reilly.

He also criticised the HSE for providing figures on its expenditure in the past which he claimed had proven to be inaccurate.

“I’m not prepared to tolerate that situation on an ongoing basis.

“I want absolute transparency,” the minister insisted.

Meanwhile, Dr Reilly confirmed that he had received the report of the Dolphin Review, which is examining almost 30 different possible locations for the new national children’s hospital.

The minister ordered the review after An Bord Pleanála unexpectedly rejected the plans submitted for the new hospital on the site of the existing Mater Hospital campus earlier this year.

Dr Reilly said the 70-page report assesses the advantages and disadvantages of the various options, which were the subject of a large number of submissions, rather than containing one single recommendation.

It is expected that Dr Reilly will bring a recommendation to Cabinet before the end of the current Dáil session.

The minister acknowledged that the choice of location will represent one of the biggest projects in the Government’s lifetime.