Dáil Éireann debate -
Tuesday, 16 Nov 1999

Vol. 510 No. 6

Written Answers. - Hospital Services.

Bernard Allen

Question:

248 Mr. Allen asked the Minister for Health and Children if he will make a statement on the recent report by the Midland Health Board that the practice of the Exchequer subsidising private practice in public hospitals is no longer justified in view of the fact the opening of the insurance markets commercial insurers removes this justification and health boards should be permitted to invest in developing private practice facilities in public hospitals and to negotiate service arrangements or contracts with insurers on commercial terms. [23363/99]

Minister for Health and Children (Mr. Cowen):

The recently published White Paper on Private Health Insurance sets out the Government's position with regard to the provision of private health services in public hospitals. This includes the Government's wish to safeguard the core values of the private health insurance system, while facilitating competition, as well as its intention to regulate the market only to the extent necessary to protect the interests of the common good and to ensure that the regulatory framework is fair and consistent. I am satisfied that sustaining the mix of public and private practice in public hospitals is desirable and to the benefit of all patients.

The White Paper proposes the development, over a period of five to seven years, of pricing arrangements which will more closely reflect the economic cost of such services. The main beneficiaries from the introduction of more realistic costing will be the teaching and regional hospitals where the gap between current charges and non-capital costs is most apparent.