HSE allocation reaches €14.7bn to cover capital and current costs

Health: An extra €1

Health:An extra €1.1 billion will be allocated to the HSE next year to cover day-to-day spending and capital developments, it was announced yesterday.

This will bring the HSE's budget to €14.7 billion for next year.

Some €325 million of this will have to go on pay increases for staff and €545 million of it has been earmarked for capital developments, a similar amount to that provided for this purpose last year. The amount set aside for nursing home refunds next year is €150 million, down €210 million on the sum allocated for 2007. Much of this year's allocation has not been spent.

The amount earmarked for the Department of Health is €491 million, up €13 million on last year. Some of the increase will be for the extension of the BreastCheck service.

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The Department of Health budget also includes a sum of €90.4 million for the National Treatment Purchase Fund, €2 million more than this year.

This fund accommodates all waiting list data and arranges treatment in private hospitals for public patients awaiting treatment for more than three months.

In a statement from Minister for Health Mary Harney it was noted that the increased funding for the HSE announced in yesterday's Estimates was not necessarily all it would get next year.

"Today's pre-Budget Estimates provide more than €1 billion extra revenue funding next year for the HSE to deliver our public health services, an increase of 7 per cent. This is before any service development funding which will be announced on budget day," she said.

"Seven per cent growth is a substantial increase by international and any other standards to maintain existing service levels," she added.

"The challenge for our health services is to deliver existing and new services from a combination of sustainable new tax funding and the achievement of cost savings each year."

The HSE will now have to submit to Ms Harney for approval details of the service plan it can deliver in 2008 within the resources allocated.

This year, for the first time, the Estimates cover only the updated cost of continuing to provide the "existing level of service". All service development measures, as well as any possible increase in the cost of private beds or other health charges, will be announced on Budget day.