Thursday, December 13, 2012

'No incentive' for health management to stay within budget ? Irish ...

By Gary Culliton.

The Ogden and the PA Consulting Group reports have influenced this year?s budgeting process, the Minister for Health has revealed.

Dr James Reilly said that because of the budgeting system currently in place, there really is no incentive for health management to stay within budget and when they do so, their savings are taken from them.

The reports both highlighted the difficulties within the health system and a lack of clarity around HSE finance, the Minister said.

The Ogden review refers to unconventional responsibility at national level in the HSE, Dr Reilly has told the Joint Oireachtas Health Committee recently.

?Financial control and reporting lie within a separate portfolio to financial management responsibility at HSE director level,? he said. The Ogden review also refers to low levels of professionally-qualified accountants throughout the service. It has been estimated that only 10 per cent of staff involved in HSE financial management and control are qualified, whereas in the UK the figure is 25 per cent. ?This is the second-biggest budget in the State. The report states that the core financial management capability of the system must be enhanced and it details issues such as computer systems not talking to one another,? Dr Reilly said.

The HSE?s operating model remains tied to the previous health board structure and multiple legacy systems are in use. These ?do not deliver an integrated financial performance framework that operates consistently across all regions. This creates inconsistencies in approaches to data collection, analysis and financial performance management and does not support effective consolidation,? said Dr Reilly.

The PA Consulting Group reported comments that the Ogden review was the latest of a series of reviews that have highlighted systemic weaknesses in financial management within the HSE since its inception.

Both reports concluded the HSE?s current budget difficulties are a consequence of systemic failings in financial management over a number of years.

gary.culliton@imt.ie

Source: http://www.imt.ie/news/latest-news/2012/12/no-incentive-for-health-management-to-stay-within-budget.html

david blaine gotye

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