Agency costs have increased by 38 per cent since 2009 when €108.3 million was spent, writes GORDON DEEGAN
THE MINISTER for Health, James Reilly, has confirmed that agency costs at the Health Service Executive (HSE) last year increased by 15 per cent to €176.5 million.
In a written Dáil response to Fianna Fáil’s health spokesman, Billy Kelleher, Dr Reilly confirmed that agency costs increased from €153.3 million to €176.5 million last year and have increased by 38 per cent since 2009 when €108.3 million was spent on agency costs.
The figures provided by Dr Reilly show that the largest percentage increase in agency spend last year was among “other client/patient services” that went up by 58 per cent from €21.3 million to €33.6 million.
Dr Reilly confirmed that agency costs in the clinical sector increased by 14.7 per cent, going from €109.3 million to €125.4 million – agency costs in the clinical sector have increased by 86 per cent from the €67.1 million spend in 2009.
He said that agency costs in the non-clinical area last year decreased from €22.6 million to €17.4 million.
Dr Reilly said: “In the health service, agency staff have traditionally been used to meet a short-term service need or where some flexibility in staffing a service is required.
“In 2011, although the HSE had negotiated new agency contracts which involve lower unit costs, the use of agency staff accounted for approximately €177 million.
“This was accounted for in part by the usage of agency staffing to cover longer-term staffing needs. When locum staff, who are employed by the HSE, are added, the total amounts to over €200 million.”
Dr Reilly said: “This is not a sustainable approach and the HSE’s National Service Plan 2012 commits to significantly lowering the volume of agency usage across all staff functions, with a target reduction of up to 50 per cent in 2012.”
However, he added: “The plan also notes that the transposition into Irish law of the Temporary Agency Work Directive will increase the unit cost of agency staffing.”
Assistant general secretary with Impact, Andy Pike, said yesterday: “The increase in the spend on agency staff is a consequence of the HSE not replacing the front-line staff who have been allowed to retire early.”
Mr Pike said the target to reduce the spend on agency staff this year by 50 per cent “is extremely ambitious and unrealistic”.
Mr Pike said the employment of agency staff was now more expensive than it once was as agency staff must now enjoy the same pay terms as permanent staff.
“The employment of agency staff is not a cheap option and is a false economy,” he said.