HSE’s ‘not getting value for money’
PAC criticises lack of tendering for health services
THE health service is not getting full ‘value for money’ for taxpayers by failing to ensure there is competitive procurement of goods and services, the Public Accounts Committee has said.
A report released by the Dáil committee about procurement practices also states that the HSE is ‘leaving itself liable to legal action being taken by those in the market’ who are denied the opportunity to compete for work.
PAC chairman John McGuiness said that he believed that if senior management in the HSE cannot overhaul the current ways in which their organisation operates in terms of procurement, then they are ‘not fit for the job.’
The report states: ‘ the HSE budget for procurement of goods and services i s approximately €1.6billion and within that budget there is potential to achieve significant savings if products are competitively procured.’
It points towards a recent Comptroller & Auditor General report which found that 36 out of 100 tenders examined had not been subject to appropriate procurement processes. ‘The key issue arising here is that HSE are not achieving value for money for the spend if goods and services are not competitively procured,’ it was heard.
The report also warns of potential legal ramifications. ‘The HSE is leaving itself liable to legal action being taken by those in the market who are denied an opportunity to compete for work or for supplies. This is a matter that the HSE should now examine, if necessary in consultation with the Chief State Solicitors Office and the Office of Government Procurement.’
The PAC report was also highly critical of the health service for awarding contracts for carrying out major i nvestigations without putting them out to tender.
The report cites the example of a major investigation into a foster home in the southeast, where two contracts – each worth about €100,000 – were awarded without a tender competition. All contracts with a value above €25,000 are supposed to be put out to tender.
However the HSE has already argued that it is not always appropriate to do this for major investigations because of the sensitivity and time-urgency involved.
In relation to the allegations of abuse in the south east, the report examined why staff, who were former employees of the HSE, were selected to conduct the inquiries.
It noted that the HSE director general outlined that the former employees had never held management responsibility for service delivery in the south east. However the PAC stated yesterday: ‘The Committee, again while not impugning the integrity of those former employees, is concerned however that such individuals can be involved in investigating matters that may also involve examining systemic failures or failures on the part of staff who work in the health sector. The HSE needs to ensure any perceived conflict of interest is addressed prior to any contracts being awarded.’
Mr McGuiness said he has been told gardaí have decided there will not be prosecutions on the same case over the abuse allegations. This is because many of the alleged victims are unable to fully participate in full interviews, he said.
‘Leaving itself open to legal action’