Written Answers. - VHI Dispute with Hospitals.
Desmond J. O'Malley
Ceist:
9
Mr. O'Malley
asked the
Minister for Health
the concerns, if any, he has that the escalation of the dispute between the VHI and the independent hospitals will result in VHI subscribers losing confidence in the VHI's ability to provide them in the future with treatment covered by their subscriptions; the further concerns, if any, that subscribers may be tempted to withdraw from the VHI and put the onus on the public health service to provide health care for them; and if he will make a statement on the matter.
[5777/96]
Máire Geoghegan-Quinn
Ceist:
11
Mrs. Geoghegan-Quinn
asked the
Minister for Health
the plans, if any, he has to call a summit of health insurance interests following the notification by the VHI of new arrangements for subscribers with certain private hospitals; and if he will make a statement on the matter.
[5786/96]
Limerick East): I propose to take Questions Nos. 9 and 11 together.
The Independent Hospital Association represents 19 private hospitals countrywide. Its member hospitals constitute approximately one-third of all private beds in both public and private hospitals. The vast majority of patients treated by the association's member hospitals are members of the Voluntary Health Insurance scheme. The association 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. Regrettably, 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. I recognise that the association must pursue what it considers to be an equitable settlement for its members while the VHI must seek to obtain an arrangement, in the interests of all its members, which it considers sustainable in terms of increases in premium levels.
When a centrally negotiated arrangement failed, the VHI proceeded to pursue individual arrangements with the 19 hospitals concerned. However, with the exception of one major acute hospital which concluded an agreement, all member hospitals either declined, or did not respond to, a request for direct negotiations and, therefore, agreement remains outstanding with 18 private hospitals.
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.
As VHI members will continue to be indemnified as normal under their particular cover plan for treatment in private or semi-private beds in public and voluntary hospitals, it is likely that there will be some movement by them to such hospitals instead of opting for treatment in private hospitals. The degree to which such movement may occur cannot be determined. It is part of a providers normal process to manage their volumes of treatment at a given time. Any significant movement of the kind mentioned would arise to be dealt with by providers as part of this process.
It is not open to me to intervene in a dispute of this kind which concerns fundamental commercial arrangements between an insurer and a number of private healthcare providers. Financial arrangements between any health insurers and service providers are matters to be directly negotiated between the parties. It would not be appropriate for me to intervene in the dispute in view of my role as the regulatory authority for the health insurance market. 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. This does not, however, prevent me from calling on the different parties to try to resolve their differences in the time remaining up to 4 April and I would request them to do so as a matter of urgency.
I am making arrangements for the establishment of a healthcare consultative forum. It is intended that this would bring together all the parties involved so as to facilitate the development of consensus on the improved delivery of private healthcare. The forum will not be involved in negotiations on budgetary matters but rather will involve itself in creating an environment where matters of common interest can be addressed.
