The full implementation of the new Integrated Financial Management System (IFMS) is a key enabler of better financial performance, with vast potential for improved value for money. When completed IFMS will produce more consistent financial information, shed greater light on HSE expenditure and financial performance, and enable better interrogation of data to identify potential cost savings across the entire Health Service.
As of now, the HSE has successfully rolled out IFMS to all its own operations representing 80% of the HSE Health spend. To fully realise the potential benefits of IFMS it must now be implemented across all HSE funded services and in particular the voluntary hospitals.
These organisations, which include some of our biggest hospitals, represent a significant 20% portion of the Health budget and are in receipt of almost €5 billion of state funding. They are nearly entirely funded by the State - the staff are public servants and the infrastructure, equipment, medical and surgical supplies, and running costs are all taxpayer-funded. These organisations must have the same levels of financial oversight and accountability as other HSE organisations.
I am aware that the voluntary hospitals have raised concerns about the implementation of IFMS implementation.
While the HSE are better placed to provide more details about their engagement with specific hospitals, I wrote to each of them myself setting out the urgent need for full deployment of the IFMS across all publicly funded hospitals, including voluntary hospitals, as endorsed by the Cabinet Committee on Health.
I now expect that measures to ensure alignment of financial reporting, including deployment of the IFMS where this has not already happened, to be implemented without delay.