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Health expenditure cuts recommended by An Bord Snip Nua

An Bord Snip Nua has released its report which recommends public expenditure cuts that amount to a potential saving of €53billon per annum.

The Irish Exchequer funds health care services through the Department of Health and Children, the HSE and the Office of the Minister for Children and Youth Affairs. An Bord Snip has recommended potential savings in Irish health care that amount to just under €1,230 million.

The group headed by UCD economist Colm McCarthy has been particularly interested in increasing competition in the provision of healthcare services. It believes that the phasing out of current GP's contracts would allow a new lower price to be achieved and save €370 million annually.

It also recommended implementing a change in eligibility criteria for Medical Cards with a greater emphasis on the medical needs of individuals. The monthly threshold for the Drugs Payment Scheme may also be increased to €125.

Staffing reductions of over 6,168 in Irish health care are recommended over a three year period while over 17,000 jobs may be cut across the entire public sector. The report also highlighted that there is no place for restrictive agreements and work practices involving trade unions which have been an inhibitor to staff efficiency and have blocked quality patient care.

The report has suggested an increase in hospital charges to help reduce inappropriate demand for services at acute public hospitals. One of the main methods to achieve this would be to increase A&E charges for those presenting without a letter from their GP to €125.

The Hepatitis C Tribunal (one of Malcomson Law's specialist areas of legal practice) and other inquiries will not be one of the areas affected by cuts in expenditure. Expenditure in this area arises out of awards and settlements but the report states that "options for savings in this area are limited". Instead it recommends introducing incentives to promote better risk management by hospitals to avoid the costs arising from medical negligence.

An Bord Snip also requested that it must get access to the accounts of all hospitals which receive public funding including those which are not state-owned. Roughly €1.8billion is spent annually on 29 voluntary hospitals.

The HSE has no say in their management and the Comptroller and Auditor General has access to view the accounts of only three of the 29. It hopes to bring the accounts of major hospitals such as Crumlin, Tallaght, the Mater and St. Vincents under a greater deal of scrutiny to allow for further potential savings in the health care system.

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