asked the Minister for Health if he is aware of the serious problem caused for the VHI by the rapidly escalating cost of private accommodation in public hospitals; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Cost of Private Accommodation in Public Hospitals.
17.
Increases in charges for private accommodation in public hospitals are a regular annual occurrence and do not introduce any new element which has not been experienced and dealt with in the context of Voluntary Health Insurance arrangements.
Despite the increases in those charges as from 1 January, 1985, the increase in VHI premiums has been restricted to 7½ per cent with effect from 1 March, 1985. Furthermore, income tax relief will continue to apply to premiums.
Will the Minister accept that a private bed in a public hospital is now more expensive than a private bed in such places as St. Vincent's Private Nursing Home and that this is the first time that has happened? Because of the massive increase in the past number of years, the cost of insuring with the VHI has increased by 137 per cent in the past five years. Much of this is as a result of the increase in the cost of accommodation for private patients in public hospitals. Is the Minister not concerned about the effects on the VHI and the fact that 60,000 persons per annum are leaving the VHI and coming back into an already overcrowded public health service which is under financed?
I do not accept that people are leaving the VHI. Last year there were 323,000 subscribers, an increase of 4,000 or 5,000 over the previous year. There is an inflow in and out of the scheme each year. The VHI have kept up their subscribers remarkably well. They cater for 1,013,000 people at the moment. There have been regular increases of 20 per cent or 25 per cent and I admit these were high but they did no more than reflect to some degree the economic cost of providing a bed in such a hospital. Taking public hospitals as a whole, the average daily cost of a bed is estimated at £100 at least and, in that context, £83 per private bed is not exorbitant.
It is higher than a private nursing home.
A private nursing home is not an acute hospital. Somebody has to pay for the common contract.
The remaining questions will appear on tomorrow's Order Paper.