Call for Submissions on the ‘Money Follows the Patient Policy Paper on Hospital Financing’

The Government is committed to the introduction of a new Money Follows the Patient model of funding for public hospital care. This new model is being introduced in order to:

  1. ensure a fairer system of resource allocation where hospitals are paid for the quality of care they deliver;
  2. drive efficiency in the provision of high quality hospital services;
  3. increase transparency in the provision of hospital services; and
  4. ultimately, support the move to an equitable, single-tier universal health insurance system where every patient is insured and has their care financed on the same basis.

The introduction of Money Follows the Patient will involve changing from the current inefficient system of block grant budgets to a new approach where hospitals are paid for the actual level of activity they undertake. This will be facilitated through the introduction of a prospective case-based payment system using Diagnosis Related Groups. The changes will effectively mean that hospitals will be funded on the basis of the quantity and quality of the services they deliver to patients and not the size of last year’s budget.

The Minister for Health, Dr. James Reilly, TD recognises that successful implementation of Money Follows the Patient will require the support and commitment of many people across the health service and that effective consultation with stakeholders is essential. For that reason he published the ‘Money Follows the Patient Policy Paper on Hospital Financing’ on 15 February 2013 as a basis for consultation.


The Department would very much welcome the views of interested parties on the proposals as set out in the policy paper. Submissions should be forwarded by email to or alternatively by post to ‘MFTP Consultation’, MFTP Unit, Department of Health, Hawkins House, Hawkins Street, Dublin 2. In order to have maximum impact in terms of the development of an implementation plan for MFTP, your views should be submitted by 5pm on Friday, 3 May, 2013 and any queries in the interim should be sent via email to the address above.

The Department encourages you to use the chapter headings of the policy paper as a structure for your submission as follows:

  1. Establishing the Vision;
  2. Understanding the Starting Point;
  3. Defining the Service;
  4. Designing the Price;
  5. Goverance Structures;
  6. Implementation;
  7. Next Steps.

Freedom of Information

Please note that all submissions received will be subject to the Freedom of Information Acts 1997 and 2003.


The ‘Money Follows the Patient Policy Paper on Hospital Financing’ is available here (PDF)