Health capital spending to fall €100m

The Government has said it will not be possible to develop all the priority healthcare infrastructure projects originally planned…

The Government has said it will not be possible to develop all the priority healthcare infrastructure projects originally planned.

Government spending on healthcare capital projects will fall by nearly €100 million in each of the years ahead under the terms of the review of the Government’s infrastructure priorities 2010 – 2016. However it will spend nearly €2.9 billion on healthcare projects in the years up to 2016.

The Infrastructure Investment Priorities 2010-16 plan says the Government had set as priorities for development: the Mater Hospital, the new national paediatric hospital, ward blocks and accident and emergency facilities in Our Lady of Lourdes Hospital and Letterkenny General hospital, improved maternity facilities, the roll-out of the national medical imaging system and the national programme for radiation oncology.

It also said that investment in mental health infrastructure – to be funded by the disposal of surplus lands under the terms of the mental health strategy, the development of community nursing units, primary care and facilities for the disasbled as well as facilities to support child welfare protection were also considered priorities.

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However the report says that "budgetary pressures have become manifest since these projects were articulated".

It states that this means that "it will not be possible to procure all of the projects through planned capital envelopes".

"In response to this, the Department of Health and Children has both reprioritised the timing of investment decisions and is exploring the potential for alternative means of financing investment such as leasing and asset disposal".

The report does not spell out whether any particular projects will be delayed as part of this re-prioritising of investments.

The report says that a number of key projects in the acute care sector could be progress by means of “alternative finance”.

It says that these include:

* Acute facilities at Sligo General Hospital

* Relocation of major maternity hospitals to acute hospital sites; and

* Modernisation of laboratory services;

In terms of primary care, the HSE has identified an extensive list of proposed developments to advance provision of primary care centres. Submissions were invited for proposals to develop over 250 sites and the Board of the HSE has approved in principle advancement of 182 locations. These projects are being progressed as leases.

The summary position at present is as follows:

* 2 primary care facilities opened in 2009;

* 32 facilities are scheduled to open in 2010; and

* 91 facilities are scheduled to open in 2011/12.

These primary care developments are being progressed on the basis of leasing and this approach has been subject to detailed evaluation. HSE analysis shows that this approach offers good value for money. The costs are therefore predominately on the current side, and only minor costs in relation to equipping facilities are envisaged.