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Dáil Éireann debate -
Tuesday, 2 Apr 1996

Vol. 463 No. 6

Written Answers. - VHI Dispute.

Peter Barry

Question:

122 Mr. Barry asked the Minister for Health the plans, if any, he has to intervene in the impasse between the VHI and some private hospitals; his views on whether this dispute is causing distress to those about to have treatment in the private hospitals concerned; his further views on whether the prolonging of the dispute will inevitably put more pressure on voluntary hospitals; and if he will make a statement on the matter. [6949/96]

Limerick East): The Independent Hospital Association of Ireland (IHAI) negotiates centrally for its members with the Voluntary Health Insurance Board in relation to arrangements for payment in respect of the care and treatment of VHI members. The central negotiations which took place in respect of payment arrangements between the parties for this year did not achieve a mutually satisfactory conclusion and resulted in a dispute between the parties. Furthermore, with the exception of one major acute hospital, efforts by the VHI to have direct negotiations with a view to reaching agreement with individual hospitals did not succeed.

I have no plans to intervene in this dispute as it would not be appropriate for me to do so in view of my role as the regulatory authority for the health insurance market. Financial arrangements between any health insurers and service providers are matters to be directly negotiated between the parties. I cannot, for example, attempt to bring about a solution which would lessen the financial exposure of the dominant insurer in the market, neither can I increase the return to private hospitals which could affect future competition. However, recently, in reply to a question in the House I called on the parties to try to resolve their differences and I would again urge them to do so without delay. I concur with the sentiment expressed in the Deputy's question that this dispute must be a cause of concern to people who are proposing to stay to people who are proposing to stay, and receive treatment, in any of the 18 private hospitals involved in the dispute.

I should point out that private hospitals which are not members of the Association and public voluntary hospitals are not involved in the dispute. Private and semi-private accommodation in health board hospitals is also unaffected. The VHI's arrangements for the payout of professional fees remain unchanged, regardless of the hospital in which the member receives treatment. It is reasonable to assume that the prolonging of the dispute would have some impact on demand in the public-voluntary hospital sector but it remains to be seen to what, if any, significant extent this would occur. Any such impact would be a management issue for the hospitals concerned.
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