THE VHI wants to negotiate with private hospitals to establish set prices for specific medical tests. The health care insurer has drawn up a schedule of prices for specific tests which it intends to put to the 20 private hospitals in coming weeks.

VHI medical director, Dr Bernadette Carr, said the schedule would be sent to the hospitals in coming weeks. "We will be contacting all the hospitals to discuss the charges," she said.

The group wants to establish a schedule of charges for medical tests similar to the schedule of fees which operates for payments to consultants, according to Dr Carr.

VHI finance director, Mr John Looney, said the move was part of the organisation's strategy to administer the claims of its 1.4 million members in a more effective and cast efficient manner. Following an examination of charges for a range of medical tests, the group said it found a wide variation in the fees charged between different hospitals.

"The situation that currently exists is totally unsatisfactory in that charges vary so much from one hospital to another. Costs for medical services should be standardised and streamlined in a more consumer friendly manner," Dr Carr said.

Examples of the variations in charges quoted by the VHI included cholesterol tests which cost from £5 to £17, chest X rays costing from £23 to £56 and liver function tests costing from £10 to £41.

The variation in charges was also evident in more costly procedures, according to the VHI, which found that charges for hip replacement varied from £3,874 to £6,247.

Meanwhile, the Bon Secours hospitals, which will receive the VHI schedule, have said that the only discussions it is having with VHI are in relation to medical tests. The spokesman was commenting on Dr Carr's statement on Tuesday that the VHI was engaged in discussions with the four Bon Secours hospitals about a full cover agreement.

Under full cover agreements patients do not face any top up bill from the hospitals for accommodation and services. These hospitals have reached a full cover agreement with BUPA, the health care insurer due to compete with the VHI for members when it introduces its products towards the end of the year.