Unrealistic budgeting is having a “hugely negative” effect on the health system, according to the IMO.

In a statement, the Organisation said it was “unreasonable” to expect the system to run on figures that did not reflect the demand of a growing and ageing population, with increasingly complex treatment needs.

The IMO welcomed the publication of a Fiscal Advisory Council analysis earlier this week which “identified bad budgeting” as a key reason for overspending in the health system.

“No health system can balance the books if the financial targets it sets for itself are completely unrealistic,” said Prof Matthew Sadlier, IMO President.

“We are in a bizarre situation now whereby the Government is setting itself up to fail by delaying the introduction of multi-annual funding and setting targets that can never be met.”

He said that it appeared that the Government was unwilling to accept the reality of the needs of a growing and ageing population. “If we want to create a world-class health system, we need to properly resource the system with the right amount of beds and doctors, and we cannot be slaves to farcical yearly targets that everyone who works in the system knows we cannot hope to achieve.”

He noted a recent IMO survey which suggested that 98 per cent of doctors believe cost-cutting measures recently announced by the HSE will negatively impact patient care.

“The IMO has consistently said that if we are to promise a health service that delivers for patients, we must fund it, or else be honest with the public and say what cannot be done within the fiscal restraints.”

He added that the removal of private practice from public hospitals had created a gap in funding. Prof Sadlier said the Government had promised to replace that funding but said it was unclear as to the process for identifying and replacing the lost income upon which the health system relied.

The Government has  announced “a record” €25.8 billion health budget “to support the continued delivery and expansion of quality, affordable healthcare services in 2025”.

According to the Department of Health the funding represents an overall increase of €2.94 billion on the January 2024 allocation.

It will provide for more than 3,300 additional staff, deliver 335 additional hospital beds, “expand services, deliver increased productivity and continue the reductions in waiting lists and trolley numbers”.

The 2025 health budget includes €1.2 billion allocated for existing level of service, €1.5 billion additional funding for 2024 pressures and €335 million in additional new measures.

According to the Government the 2025 budget also includes  €33 million investment “to provide more and better cancer services”, publicly funded HRT products for women experiencing symptoms of menopause and extension of publicly funded IVF as part of €35 million measures for women’s healthcare.

On the budget announcement Minister for Health Stephen Donnelly said, “whether it’s an appointment with a GP, a home care package for a loved one, an X-ray or MRI, quick access to emergency care or a minor injury unit, an appointment with a hospital consultant or surgery, Budget 2025 is all about making this a reality for more and more patients and families”.

“We are living longer and living better, but our growing and ageing population place additional demands on our services. We continue to respond to these challenges, and we are placing a strong focus on more productivity alongside investment in increased capacity and in workforce planning to ensure we can meet the needs of our healthcare service into the future.”

In response to Budget 2025’s investment in cancer care, Irish Cancer Society CEO, Ms Averil Power said the charity weclomed “the priority given to people affected by cancer in Budget 2025. The investment provided for in this Budget will benefit people with cancer and their families all over the country”.

She added that “hopefully, this is the beginning of a new approach to funding cancer care that will see sustained increases in ringfenced funding for cancer services going forward”. 

“With cancer cases expected to double by 2045, continued increases in investment will be required to meet increased demand and ensure that Irish patients benefit from advances in cancer research and services.”