The HSE has insisted that protecting the quality and volume of frontline services in 2014 is essential, despite the fact that cost reductions of €619 million across the health service must be found.

It has just published its National Service Plan 2014, which sets out the type and volume of services that the HSE will provide next year. A total of €13.1 billion will be spent on health in 2014, ‘reflecting total cost reductions of €619 million'.

Hospitals will face cuts of €254 million in 2014, which includes next year's cuts, but also overruns from this year which have to be carried over.

The executive insisted that a €113 million funding gap that came about after a plan to cut medical card spending was dropped, will not come from medical card holders.

"This sum remains a target to be achieved, but will come instead from €47m additional monies from Government, with the balance coming from a reduction in money set aside for lump-sum pension payments in 2014. A €23m probity target remains in relation to medical cards," it said.

The plan states that additional savings and cost containment measures of €129 have been identified, including through hospital reconfiguration (€7.5 million) and procurement (€30 million).

Not surprisingly, the HSE warned of a ‘very challenging year ahead'.

"There remains a significant challenge for the health services throughout 2014. My principal focus is to continue to deliver the same level of frontline services with a reduced budget while ensuring that quality and safety is not compromised in any way. In the context of a reduced budget, the Haddington Road Agreement provides an important mechanism by which this Service Plan can be delivered," commented HSE Director General, Tony O'Brien.

He pointed out that next year will see €178 million in additional funding for service developments including additional medical cards (€35 million), the continued rollout of BowelScreen (€2 million) and organ donation and transplant services (€2.92 million).

Almost €1.5 million will also be spent on the implementation of recommendations following the Galway maternity reports into the death of Savita Halapannavar.

Meanwhile €37 million will be spent on providing GP services for children aged five and under.

The full plan can be viewed here