HEALTH SERVICE EXECUTIVE:THE HEALTH Service Executive (HSE) is expected to signal next week that new spending restrictions will have to be introduced if it is to live within the financial constraints expected to apply next year.
The HSE is expected to tell trade unions on September 12th that the new measures will have to be introduced before the end of this year to allow it to live within a significantly tightening environment in 2009.
The HSE is drawing up proposals for the new spending cuts, which will be finalised over the coming weeks.
There is a general acceptance that the increase in the Government allocation to the health sector in 2009 will be far lower than the €1 billion-plus received this year.
The HSE is already facing significant financial difficulties for this year.
The Irish Timesunderstands that the HSE has recorded a financial deficit of about €200 million to the end of August. It is now seeking to generate value-for-money savings of €470 million to allow it live within its current allocation.
It is understood that while the financial difficulties in the hospital sector have stabilised, problems remain, particularly in relation to the demand-led schemes in the community sector.
Up to the end of July the hospital sector had recorded a deficit of €28 million while the overrun in the community sector stood at €102 million.
It is understood that there has also been a delay in receiving about €125 million due in funding from the British government in respect of people who paid social insurance in the UK receiving treatment in Ireland.
This issue is being pursued by the Department of Health and Department of Finance.
In a separate development yesterday, hospital consultants called on the Government to provide an additional €1.4 billion in funding for the health service next year. In a pre-budget submission, the Irish Hospital Consultants Association (IHCA) said that current expenditure provisions for the HSE for 2009 needed to be increased by 9 per cent to take account of known and likely cost pressures.
The president of the IHCA, Dr Paul Oslizlok, said the Government had two choices, either to fund what was required to run the health services or to honestly tell the public that the money was not there and where the cutbacks would be.
Dr Oslizlok said "it would be tragic to repeat the mistakes of 20 years ago when indiscriminate cuts caused lasting damage to the health service".
He said it would be arrogant of him to tell the Taoiseach or the Government that they should raise taxes to generate the required level of funding for the health sector as this was not his area of expertise. It was for the Government to decide where the money should come from, he said.
The IHCA said that a 9 per cent rise in funding next year was required to provide the resources to address the shortfall in health service funding in 2008 and to take account of actual and anticipated activity levels.
It said the rise would also be required to pay for increased medical card costs due to increases in unemployment.
The IHCA said some of the additional health sector costs next year could be offset by possible efficiencies and savings if the consultation process in the Health Forum managed to reach a consensus on potential changes of this nature.
However, it said it would be "unrealistic and premature" for the HSE and the Government to assume such savings unilaterally, as there had been insufficient discussion on these issues with the trade unions and staff representative bodies to date.