Private companies could take over public hospitals

Private companies could be allowed take over the management of underperforming public hospitals, under health reforms being considered by Minister for Health Leo Varadkar.

Mr Varadkar also wants hospitals and community healthcare organisations to be incentivised and paid more to do more work, such as hip operations, home help services or dermatology clinics.

In a wide-ranging speech setting out the likely health features of the Fine Gael general election manifesto, Mr Varadkar said newly formed hospital groups should have the freedom to make collective agreements and negotiate independent contracts with staff "outside of the constraints of public sector rules in the way semi-State companies do now".

“With authority will also come accountability,” he told the Institute of Chartered Accountants.

“Where hospitals consistently underperform in terms of clinical outcomes, patient experience and financial management, it should be open to the provider to transfer management of the hospital for a period of time to a private provider by means of a concession or management contract.”

The key challenge for Government was to find a way to deliver universal healthcare at a cost that was affordable and sustainable for society, he said.