Update: Procurement Throughout the Health Services, 5th August 2015

QUESTION NO:  241

DÁIL QUESTION  addressed to the Minister for Health (Leo Varadkar)
by Deputy Bernard J. Durkan
for WRITTEN ANSWER  on 09/07/2015    

 
  *  To ask the Minister for Health the extent to which procurement throughout the health services continues to achieve the best results for the taxpayer; and if he will make a statement on the matter.

                                                                                         Bernard J. Durkan T.D.

 
REPLY.
The HSE has achieved significant savings over the last number of years through the on-going reform of its procurement process. Since January 2014 the HSE has achieved cost reductions of c€50m – €31m in 2014 and circa €19m to end May 2015.  Since 2010 and with the development of a central procurement function the total savings achieved to date is €250m.

In addition,

• The HSE is implementing, on a phased basis, its National Distribution Centre (NDC) Plan.  Its purpose is to consolidate stock holding across the HSE, improve contract compliance, increase stock management at point of use, and control and deliver efficiencies in transactional costs.
• Work has commenced on a Data Warehouse and Business Intelligence System which will, inter alia, enable reporting and data analysis.
• A Health Procurement Plan 2016-2019 is being prepared in consultation with budget managers.  
• A Procurement Programme Management System is being developed to manage future multi-annual procurement plans and to provide up to date reporting on progress and outcomes.
• The HSE has commenced a training programme for the relevant senior managers which outlines the importance of compliance with procurement rules and national financial regulations.  To date over 100 staff have received training.  
• The HSE continues to work with and support the Office of Government Procurement in delivering the Government’s commitment to Public Sector Reform which includes public procurement reform.

All of these measures will further streamline the procurement function and help to generate savings into the future. There is no single approach which will deliver best results and the extent to which HSE procurement processes continues to achieve the best practise will be determined by the success of these initiatives and future developments which can respond to the constantly changing business environment.