Health service jobs freeze blamed on drug refunds

A recruitment freeze imposed on the Health Service Executive to halt a potential €170m overspend was blamed today on demand for drug refunds.

A blanket ban has been introduced on promotions, pay rises, and agency staff for September as the Health Service Executive (HSE) tries to rein in costs and meet its budget for the year.

HSE staff have also been warned not to book hotels for meetings or travel overseas.

HSE financial controller Liam Woods insisted the long-running nurses dispute, which led to a series of one-day strikes, was not to blame for the budget crisis.

He said: “The bigger factors driving the over-run are really things like the demand-out schemes, as they are known in the community, high tech medicines and drug payment schemes… people using the schemes that are there to reclaim drug costs and other costs that are within their entitlement.

“The pattern year-on-year in those schemes is that they are growing by between 15% and 20% per annum and indeed we have been supported by Government to grow those schemes.”

The Drugs Payment Scheme allows patients without medical cards to limit the amount they have to spend on prescribed drugs. No one should pay more than €85 a month for approved drugs, medicines and appliances.

Mr Woods said the drug refund scheme had exceeded forecasts and so far this year cost around €150m.

He said the nurses’ pay and one-day stoppages cost the HSE between €5m and €6m.

Mr Woods also dismissed claims that patients’ health would be put at risk.

“There is no notion of contraction of services. In fact, what the HSE is looking to do is protect the current service level. Our commitment is to maintain the front line service level – we are not looking to reduce the service level,” he said.

He said the restrictions would last until the end of the month and would be reviewed over the next few weeks.

“At this time of year, the measures are for the initial period of September and they are subject to review both within September and beyond it,” Mr Woods told RTE Radio.

“It‘s because we are looking to manage our total resource through to the year end.”

Mr Woods said the HSE is already in discussions with Government over its budget for 2008.