A recent report from the Department of Health has spotlighted a concerning trend in Ireland’s health sector: despite significant budget increases, hospital activity has not seen a proportionate rise in productivity. The report, published on Monday, reveals that between 2016 and 2022, the health budget swelled by €8 billion, yet hospital activity only increased by less than 10% during that period.
In response, the Department of Health has unveiled a comprehensive action plan aimed at addressing inefficiencies and cost containment within the health service. Key targets include finding €554 million in savings across the sector, particularly through reducing spending on external management consultancy firms, which previously cost the HSE over €458 million.
The plan also includes measures to enhance productivity, such as setting reduction targets for hospitals and implementing a central referral system to expedite patient access to care. Notably, a new approach to waiting lists will see outsourcing to private providers for patients waiting longer than 12 months without an active plan, particularly in specialties with extensive waiting lists like dermatology.
Health Minister Stephen Donnelly emphasized the need to align spending with outcomes, noting that despite a significant increase in staff numbers, hospital activity has not seen commensurate growth until recently. He highlighted positive trends in outpatient, day case, and inpatient activities from the previous year and expressed determination to further reduce waiting times in 2024.