I propose to take Questions Nos. 118, 119, 143 and 210 together.
This Government is committed to exploring fully the scope for the private sector to provide additional capacity in the health system.
In this context, I issued a policy direction to the Health Service Executive in July 2005 which is aimed at freeing up 1,000 additional beds for public patients. This will be achieved through the development of private hospitals on the sites of public hospitals and the transfer of private activity to those hospitals thereby freeing up capacity for public patients.
The provision of up to 1,000 additional beds for public patients in this way will contribute to the achievement of the Government's commitment in the Health Strategy to increase acute hospital capacity by 3000 beds. It will also have the following benefits:
maximising the potential use of public hospital sites;
promoting efficiency among public and private acute service providers;
promoting greater competition in the supply of hospital services; and
offering improved quality and choice to all patients.
The HSE recently advertised for expressions of interest for the construction and operation of private hospitals on the sites of ten publicly funded hospitals. The project will be procured by utilising the new competitive dialogue tendering procedure. The HSE received a large number of expressions of interest. The HSE has pre-qualified a number (approx 6 bidders per hospital site) of successful candidates to progress to the next stage. Invitations to participate in dialogue issued to the pre-qualified bidders in mid September 2006 with a deadline to submit outline proposals by late October. The aim is to select up to three bidders in respect of each site who will be invited to tender to build and operate a private hospital on the site. An operator may be a not-for-profit organisation or a for-profit organisation. Both types are already providing services in Ireland.
Proposals will be subject to detailed evaluation by the HSE. The procedure will also provide for a rigorous value for money assessment of any proposal and will take account of the value of the public site and the cost of any tax foregone. Any transaction will be on a commercial basis and will fully protect the public interest. In addition, there will be full adherence to public procurement law and best practice.