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Parliamentary Question addressed to the Minister for Health

4th October 2014 - Olivia Mitchell TD

To ask the Minister for Health if it is his Department or the Health Service Executive who will carry forward planned proposals to reduce, through mergers, the number of disability service providers; and if he will report on the progress?

Reply  

The Health Service Executive (HSE) provides annual funding of approximately €1.2 billion to over 230 voluntary agencies in the disability sector. Given the scale of funding provided to this sector, it is critical that the HSE ensures that it delivers measurable value for this funding.  
 
Recommendations on the restructuring of service delivery and the implementation of a more effective method of assessing need, allocating resources and monitoring resource use are set out in the Value for Money (VFM) and Policy Review of Disability Services in Ireland.  Responsibility for the implementation of these recommendations lies with the HSE in the first instance.  
 
The VFM Review noted that it was difficult to make any conclusive recommendations on mergers and that savings may vary on a case by case basis.  The Review did however identify significant opportunities to achieve savings in agencies’ unit cost base and to reduce average costs across the sector.  Savings in management/administration costs would be a component in this overall cost reduction.  
 
A Steering Group has been established to oversee the process of implementing the Review’s recommendations and a number of Working Groups are also in place to support VFM implementation, one of which is focusing on Governance and Service Arrangements.  This group’s terms of reference include:
 
·Streamline governance arrangements and maximise optimum efficiency by implementing a reconfigured governance and accountability framework for the disability service programme including revised Service Arrangements / Grant Agreements; and
·Put in place the necessary systems and protocols to ensure full accountability and transparency for all funding allocated from the health vote to the disability services programme.
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These new arrangements are helping to shape and drive the disability services programme and will ultimately lead to achieving optimal efficiency in the delivery of the programme.