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Senior Health Service Executive officials are contemplating deep cuts to the €350 million capital budget for the health service next year.
The move is part of its plans for reducing expenditure by €666 million next year.
The capital programme covers a wide range of investments in infrastructure and equipment across the service. The largest area of expenditure in the capital programme for next year is an upgrade to radiotherapy facilities for cancer patients in Cork and Galway which could cost about €100 million.
While new capital projects are expected to be hardest hit in the service plan being drawn up by HSE officials, sources say existing services could be hit with widespread cuts.
The HSE has until next Tuesday to draw up a service plan detailing the cuts to services due to reductions in spending announced in the budget.
Controversial expenditure
Planning arrangements for the service plan were fluid and cuts earmarked could ultimately be changed, according to sources. Health spending has been the focus of controversy since the budget because of a lack of clarity about the extent of cuts required for next year. HSE officials said that up to €1 billion in cuts may be needed in 2014 to fund expanded services and to meet existing commitments.
Minister for Health James Reilly has the power to reject the service plan prepared by the HSE, which he did in 2011. Speculation is mounting that the plan may not be agreed and published until the State exits its bailout in mid-December.
Meanwhile, The Irish Times understands that last week the HSE sought Coalition approval to reduce the level of savings expected from the Haddington Road deal this year. But it is understood the Department of Public Expenditure and Reform rejected this request. The HSE had been required to generate savings of €150 million this year from the deal on pay and productivity. But it has acknowledged it will only realise a maximum of €110 million.
Concern within the sector about the impact of repeated cuts on the quality of services is mounting. The master of the Rotunda, Dr Sam Coulter Smith, warned yesterday of "unsustainable" levels of activity at the hospital and said the HSE and the Department of Health have been repeatedly notified of the clinical risks involved.
