
December-January 2014 37
Budget 2015 included a slight improvement in
Government funding for health, which was increased by
just over €300 million. This brought the health budget
up to €13.1 billion. While this modest augmentation
is to be welcomed, Ireland has a growing and ageing
population and the additional resources are likely to be
eaten up by increased demand for existing services. This
leaves little or no scope to extend and improve health
services.
The latest OECD data show that Ireland’s total health
spend was 8.9% of GDP in 2012. This was the second
lowest in the EU (15), which had an average total spend
on health of 9.9% of GDP.
It is also necessary to remember that private money
from health-insurance premiums and out-of-pocket
spending on various health-related charges make up
a lot of our total health spending. On average, public
spending on health in the EU accounts for 75% of all
spending on health. In Ireland, this figure is 68%, and
we rely more on private sources of funding than most
other EU countries.
This mix of public and private resourcing of health
services has resulted in a dual system which means that
health services can be assigned on the basis of medi-
cal resources (i.e. health insurance) and not medical
need.
A funding model that supports a single-tier health-
care system capable of providing universal access is
long overdue. The Government had planned to reform
the funding of health services and address the inequi-
ties in the system through Universal Health Insurance
(UHI). While it is questionable whether these goals could
have been achieved through the model proposed by the
Government, its planned introduction has now been
shelved indefinitely. It appears that the Government has
gone back to the drawing board in seeking to develop a
sustainable funding model.
In the meantime, low-income individuals and fami-
lies with limited means will continue to face barriers
to access to health services, while others continue to
skip the queue and receive treatment and care in a
timely manner. For some reason it has been accepted
that treating patients on the basis of their ability to
pay instead of medical need is acceptable in Ireland.
Perverse incentives are hard-wired into the health
system and will only be addressed through root and
branch reform.
The current system of healthcare is a contributing
factor to the prevalence of health inequalities, and
research projects from the National Cancer Registry
(NCR) and NUI Maynooth clearly illustrate the effect
this is having on cancer patients living in deprived com-
munities. There have been many advances in the early
diagnosis and effective treatment of cancer in recent
years; however, these improvements do not always
reach the population in the same way.
The NCR research shows that people living in
deprived areas experience a poorer survival from can-
cer than those who live in more affluent parts of the
country and it found that breast-cancer patients from
the most deprived areas were about 30 per cent more
likely to die from their cancer than patients from the
Source: Thomas, Burke, Barry, ‘The Irish Healthcare System and Austerity: Sharing the Pain’.
The Lancet
, 2014, 383 (9928):1545
Source: Wilkinson, R. and Pickett, K, ‘A Convenient Truth: A better society for us and the
planet’. Fabian Society and F’riedrich Ebert Stiftung (2014).
Chart 1: Estimates of cost-shifting from Government to household 2008-2013
Chart 2: Life expectancy is strongly related to income within rich countries