Under the Health (Amendment) Act 1986, the Health Service Executive may impose charges on all patients for treatment arising out of injuries sustained in road traffic accidents where compensation is subsequently payable. The Act does not withdraw eligibility for public hospital services from road traffic accident victims, but allows health boards to recover the costs of all services provided to the them. Following enactment of the legislation my Department directed that charges be calculated on the basis of the hospital's average daily cost. Following legal challenge, the Supreme Court, in its judgment on 11 July 2001, ruled that this costing approach is reasonable, proper and intra vires the Health (Amendment) Act 1986.
Letters were issued by my Department to the health boards outlining the judgment and directing them to charge the average daily cost in all road traffic accident cases. While bills are generally issued in all road traffic accident cases they are only settled where compensation is received and then forwarded to hospitals. Compensation may be significantly reduced in cases where contributory negligence is established. In the event of a person failing to obtain a compensation award, that person will only be liable for the normal statutory and maintenance charges, where applicable.
The administration of the charging system is a matter for the Health Service Executive and my Department has no function in this regard.