The State’s health budget is currently voted annually by the Oireachtas. Accordingly, the Department of Health and the HSE issue service arrangements, including with voluntary providers, on an annual basis. This reflects the legal requirement that expenditure be authorised each year by the Oireachtas.
In accordance with the Programme for Government commitment, work is underway to introduce a multi-annual funding approach from Budget 2027, providing indicative multi-year ceilings aligned with the Government’s Medium-Term Expenditure Framework, in order to support better medium-term planning and sustainable, evidence-based budgeting.
Any multi-annual framework must align with recent health reforms, particularly the devolution of decision-making to the HSE Health Regions and the shift from hospital to community care. Guaranteeing multi-year budgets for individual hospitals would undermine regional autonomy and integrated planning under Sláintecare.
While recommendations have been made in relation to adopting multi-annual budgeting in the health sector, there have been no explicit recommendations for a dedicated multi-annual funding framework specifically for voluntary hospitals.
The absence of provider-specific multi-year guarantees does not undermine workforce or financial planning. These are being strengthened through multi-year workforce strategies, regional budgeting, tighter financial controls, and productivity measures.
The Department will continue to progress a prudent multi-annual funding approach at Health Vote level, while embedding regional autonomy and modern funding models that support high-quality, sustainable services across hospitals and community care.