Health Minister James Reilly today pledged that the maintenance of health services will be the key priority for 2013 despite the need for significant savings in the area, adding that frontline services will be protected to the greatest extent possible with the needs of patients being central to any decisions made.
Funding for the area of health was today put at €13.626 billion in current funding and €397million in capital funding for the Health Service in the year 2013. This represents an increase of €150m (€60m additional funding and €90m to cover a decrease in income) for the Health Group of Estimates over and above the original expenditure targets, set out in the Comprehensive Expenditure Review published last December.
However despite the extra funding provided, just over three quarters of a billion Euro in savings will have to be made next year representing a major challenge for the services.
The lesson over the last year is that by reforming our health services we have managed to do more with less resources. For example, despite the departure of thousands of staff and a significant reduction in funding, inpatient waiting lists have been reduced, and the number of people on trolleys in ED has been cut by almost 25%.
said Dr Reilly.
Even with the significant reduction in the cost base over the last few years, further significant cost extraction is required in 2013 and 2014, with €781m in savings to be achieved in 2013. However, Dr. Reilly stated:
...the primary aim is to cut the cost of services and not the services themselves. This will be achieved through efficiencies and re-organisation under public service agreement, curtailing the growing cost of pharmaceuticals and increasing income generation.
The Savings will be made up of:
Reduction in the cost of Primary Care Schemes (€323m);
Pay related savings (€308m);
Increased generation of private income in public hospitals (€65m);
Net savings on Department’s Vote (€60m);
Savings on procurement (€20m);
Other savings (€5m).
The Minister announced that due to the current financial climate, it has been deemed necessary to increase the prescription charge from 50c to €1.50,
It is essential that we control the value and cost of medicines as the international evidence shows that our costs are out of line with other comparable countries.
It has also been decided to reduce the income limits for persons over the age of 70 for medical card entitlement. While tough decisions have had to be made in this regard, under the new arrangements 92% of over 70s will have medical cards, 5% will qualify for GP visit cards and the wealthiest 3% of people will have neither card (the same percentage as at the moment).
The monthly threshold for the Drugs Payments Scheme is being increased from €132 per month to €144 per month with effect from 1st January 2013. This Scheme ensures that individuals or families do not have to pay more than the monthly threshold on approved prescribed drugs, medicines and certain appliances. The estimated saving to the Exchequer of this measure is €10m.
Significant savings have been targeted in relation to the cost of prescribed drugs and medicines, and Dr. Reilly welcomed the new agreement with the Irish Pharmaceutical Healthcare Association (IPHA) which will provide savings in excess of €400m over the next three years.
Dr. Reilly said:
My Department and the HSE will continue to work on the Health Reform Programme, which is a central element of the Programme for Government and critical to providing a health service which is fair to patients, gives them access when they need it and delivers value for money for the taxpayer.
Read the full press release here.