18 hospitals and VHI to end deal on full cover

THE VHI is to inform customers that they will no longer have full cover in 18 of the country's private hospitals from the first week in April. Included are the Blackrock Clinic and the St John of God and Mount Carmel hospitals in Dublin.

The hospitals are all members of the Independent Hospitals' Association of Ireland (IHAI), which yesterday an bounced their decision to increase prices unilaterally by 3.5 per cent from April 1st next.

Negotiations between the IHAI and the VHI on a new agreement on prices broke down in early February. The VHI then tried to negotiate with hospitals individually, but the 18 refused.

Only the Mater Private Hospital, which is a member of the IHAI, has negotiated a new deal with the VHI.

The VHI and the IHAI had agreed on a 3.5 per cent increase, but were disputing the base on which it should be calculated.

Such disputes have occurred previously, but have been settled before subscribers' cover had been affected. Both sides believe that the current dispute is more grave.

"In previous years there was a high level of confidence that we would reach a deal, but we don't have that confidence this year," the VHI chief executive, Mr Brian Duncan, said yesterday.

The VHI will seek advice on legal, administrative and other matters before deciding how exactly it will respond to the IHAI price increase. But Mr Duncan said he expects that "partial participation status" will be introduced for "some hospitals."

Under this arrangement subscribers would have to pay bills in full to the hospitals concerned, and then seek partial recoupment from the VHI. At present hospitals with the VHI directly. They will continue to do this for the present.

Mr Michael Heavey of the IHAI said it was willing to negotiate with the VHI. However, Mr Duncan said it had no indication that meeting the IHAI would achieve anything. We feel the only way to make progress at this stage is to have discussions with individual hospitals.

The Consumers' Association of Ireland yesterday said that if VHI subscribers find themselves faced with paying a percentage of their bill, they might "consider whether it is worthwhile continuing to pay VHI premiums, or whether instead they would do better to avail of the public health service."

The CAI also advised its members to avoid entering a private hospital where they would be asked to pay a certain percentage out of their own pockets.

The private hospitals concerned are Aut Evanin Kilkenny Blackrock Clinic in Dublin Bon Secours hospitals in Cork, Dublin, Tralee and Tuam Galvia in Renmore, Co Galway Clane in Co Kildare Hampstead in Dublin Highfield in Dublin Lindville in Cork Mount Carmel, St Gabriel's and St John of God, all in Dublin St Joseph's hospitals in Sligo and Dublin St Michael's in Dublin and Shanakiel in Cork.

The IHAI has asked the Minister for Enterprise and Employment, Mr Bruton, to refer the VHI's "anti competitive actions" to the Competition Authority. It has also been in touch with the European Commission.

Mr Duncan said the VHI has asked its lawyers to examine the legality of 18 hospitals introducing an identical price increase "across the board."

The VHI said the 18 hospitals concerned accounted for 32 per cent of its business last year.