Published: Wednesday, 2nd June, 2010 5:00pm

Magee faces real challenge

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The news this week that Cavanman Cathal Magee has been appointed new CEO of the Health Services Executive (HSE) is a major boost for the county.

Despite the current economic climate and the likely budgetary constraints that Magee will face into 2011, the fact that he is from a rural Border county such as Cavan has to be an advantage to health services in rural counties nationwide.

Perhaps had Magee been in place sooner Monaghan General Hospital may not have been downgraded with the closure of 56 acute beds; not to mention the closure over the past nine months according to the IMNO of 15 beds in Lisdaran, 14 in the John Sullivan Memorial Home, Cavan, six in Pathways (care of the elderly), Cavan and more recently four in Virginia.

With such huge business experience behind him, not to mention a time working in the former North Western Health Board, surely Magee is well placed to tackle the current problems in the health service.

The root of the problem is the current structure of the HSE - with too many bodies employed in management and administration and not enough on the front line.

As a former Acting Chief Executive and managing director of Eircom, Magee was a central figure in the extensive transformation and restructuring of the company. This is important given the task ahead of him in terms of restructuring the HSE.

The Minister for Health, Mary Harney, has already admitted that Magee faces a challenging term once he steps into the position this September. And she signalled that there will be further cutbacks in the public health service next year.

The government will be looking for a further €3bn in cuts from public expenditure in 2011. Given that health accounts for over a quarter of the exchequer budget a substantial portion of the savings will have to be made in this area.

Magee will face a real challenge in sustaining and improving, health services on a reduced budget. But his business experience in restructuring and cost cutting should see him in good stead to make necessary structural changes and redeploy resources across the HSE and health services nationally.

And his experience in negotiating with unions will be vital given the challenge posed in ratifying the Croke Park deal on pay. While the Cavanman may have just accepted a poisoned chalice, his qualifications, experience and track record, to date, are encouraging and bode well for the improvement of health services into the future.

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