THE HSE is understood to have told the Government that it could reduce costs by inviting GPs and pharmacists to tender for the right to provide services under the general medical services scheme (GMS) but that the level of savings would not be as high as suggested by the recent McCarthy report.
In its report, the McCarthy group recommended that the HSE should phase out existing contracts with GPs and pharmacists and fashion its own new ones, which would allow it to specify the services it required and set a price that was affordable. It said that suppliers should compete to provide these services.
The McCarthy group estimated that savings of up to €370 million could be generated from such an approach.
The Irish Times understands that the HSE has been considering two possible reforms to the provision of professional services under the GMS.
Informed sources said that under one option, the HSE could establish a panel of qualified doctors and pharmacists who could provide services.
Under this plan the HSE would establish the price it would pay for a particular level of services for patients.
Sources said that it could either establish prices to apply nationwide or that different arrangements could be put in place depending on the region.
Sources suggested that under this option higher prices could be paid, for example, for services provided in rural areas.
Alternatively, the HSE could look at tendering for a limited number of doctors and pharmacists in a particular area, having set a maximum price for a given level of services for a specific duration.
The HSE did not indicate to the Department of Health the level of savings that its reform proposals could generate but it suggested it would not be in the region of the €370 million estimated by the McCarthy group.
The department has asked the HSE to draw up detailed plans for making savings of up to €800 million on its budget for 2010.
