HealthTech Ireland has called on the Government to allocate 10 million over the next three years to reform the HSE procurement and funding model.
In its pre-Budget submission, the organisation urged Government to enable a flexible procurement model that allows for either Operational Expenditure (OpEx) or Capital Expenditure (CapEx), depending on the nature of the need.
“Digital transformation cannot be delivered through outdated procurement and funding mechanisms,” the organisation said.
“Modern healthcare technologies often require recurring service, maintenance, analytics, implementation support, training, cybersecurity, upgrades and continuous optimisation. These are operational features of modern care delivery and must be supported by appropriate procurement capability.”
HealthTech Ireland said the current model creates an upfront financial burden even where a service-based model would be more appropriate, and that the system is too rigid to accommodate rapidly evolving technologies. Furthermore, the existing system fails to adequate plan for lifecycle costs, including maintenance, upgrades and support.
The submission says Ireland’s “current capital-heavy procurement model can limit the HSE’s ability to respond flexibly to evolving patient needs and advances in health technology”.
It says these rigid CapEx cycles can favour one-off purchases rather than long-term innovation adoption. An OpEx-enabled model would allow for predictable, multi-year investment and would make it easier to trial, adopt and scale innovations that align with frontline care delivery, including digital health platforms, diagnostics, AI-enabled tools, cloud-based systems, managed service agreements, virtual care solutions and other service-based models.”
“This reform would allow the HSE to adopt modern procurement approaches that support innovation, including outcome-based, multi-year and service-based models. It would support the scaling of digital health, diagnostics, AI-enabled solutions, managed services and other health technologies where value is realised over
time rather than through a single upfront purchase,” HealthTech Ireland said.
The pre-Budget submission calls on Government to allocate €10 million over three years to support the transition to flexible procurement capability.
HealthTech Ireland has also called for the establishment of a dedicated Life Sciences Council to drive implementation of Ireland’s National Life Sciences Strategy. The Council would provide a structured mechanism for cross-government and cross-sector alignment, bringing together relevant Departments, agencies, industry, research, healthcare professionals and patient perspectives.
Its role would be to support policy cohesion, evidence-based recommendations, innovation adoption and Ireland’s global competitiveness. The estimated cost of this proposal would be €200,000.
“This is not simply a call for increased spending. It is a call for smarter, more flexible and more strategic use of existing and future health budgets to maximise outcomes, value and sustainability,” HealthTech Ireland said.
Susan Treacy, CEO of HealthTech Ireland, said: “As Government advances its commitments on digital health, integrated care, innovation and competitiveness, our procurement and governance structures must be fit for purpose. Modern healthcare technologies are increasingly service-enabled, data-driven and outcome-focused, requiring flexible funding models, multi-year planning and strong alignment between policy, procurement, clinical need and patient benefit.
“Together, we believe these asks are practical, achievable and bring impact. They are about enabling smarter, more coordinated and more sustainable use of Ireland’s capabilities to deliver better outcomes for patients, the health service and the wider economy,” she said. “By working together, we can ensure Ireland remains competitive, innovative and citizen-focused, and that healthcare transformation moves from promise to measurable impact.”
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