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Health Service Funding

Dáil Éireann Debate, Tuesday - 5 October 2010

Tuesday, 5 October 2010

Ceisteanna (43)

John Perry

Ceist:

38 Deputy John Perry asked the Minister for Health and Children the amount of money owed by private health insurers to the Health Service Executive; and if she will make a statement on the matter. [34774/10]

Amharc ar fhreagra

Freagraí scríofa

Charges are levied for private patients availing of private and semi-private accommodation in public hospitals. In most, but not all, cases these charges are paid by private health insurance companies on behalf of their members. At the end of 2009 some €92.5 million in such charges was due to the HSE. Charges due include those billed to patients or their insurance companies where payment was not received by year end and bills which had not issued by year end. A total of some €195 million in charges were incurred during the course of 2009. The average debtor period in HSE hospitals for such charges is 5.7 months. (This refers to the time from discharge to receipt of payment).

I consider that this collection period is unsatisfactory and in 2010 I set the HSE an enhanced income collection target for the year of €75 million. This target was to be achieved through improvements in the collection process and reduction in debtor days. The industrial relations action by the health services staff in the early part of the year hindered action to achieve this target but a dedicated national project to accelerate income collection across all hospitals is now underway again. The HSE has set hospital level targets for income collection and appropriate budgetary sanctions are applied should the targets not be achieved. The HSE has put in place arrangements to speed up the payment of claims, including the electronic submission of claims and the submission of claims on a more frequent basis. The HSE and private health insurers have also agreed arrangements in a number of hospitals for sign off of claims by another consultant where delays are experienced in getting sign off of claims by the treating consultant.

In addition, in order to comprehensively address issues of charging and collection in relation to this area the Department of Health and Children has undertaken a Value for Money and Policy Review of the Economic Cost and Charges Associated with Private and Semi-Private Treatment Services in Public Hospitals. The issue of private patient income collection is fully addressed as part of this Review. The Review will outline an example of best practice in relation to income collection and make a number of recommendations aimed at improving collection rates and debtors days. The review is currently being finalised and it is anticipated that the Review will be brought to Government shortly.

Finally, the Deputy's question referred to payments to the HSE but payments in respect of the same charges are also received by voluntary hospitals. At the end of 2009 some €82.6 million was owed to these hospitals. The debtor period is somewhat lower at 5.2 months but is also considered to require significant reduction. The target for improved collection set for this year and the associated initiatives underway to achieve this include the voluntary hospitals.

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