VHI dispute causing "disquiet to members"

THE VHI Members' Advisory Council yesterday expressed concern at the "worry, inconvenience and expense" being suffered by subscribers because of the dispute between the insurance company and the Independent Hospitals Association of Ireland (IHAI).

The dispute has meant that since April 4th, VHI subscribers have had to pay part of the cost of treatment at 18 private hospitals, including the Blackrock Clinic and the St John of God and Mount Carmel hospitals in Dublin.

Some 14,000 subscribers have had to pay part of their hospital bill - at least 3.5 per cent - out of their own pockets since the beginning of the dispute, according to the VHI.

The advisory council, established by the VHI to represent members' interests, said that while the issues in the dispute were important for both sides, it should be possible to overcome the current impasse "which is causing considerable disquiet to members". The council is chaired by the deputy chairman of the Labour Court, Mr Finbarr Flood.

"The council would urge the VHI and the IHAI to reach agreement in the short term on this issue and to go on as a matter of urgency to discuss possible means of controlling the increasing cost of health insurance and the apparent significant differences in treatment costs between hospitals," the statement said.

The VHI's chief executive, Mr Brian Duncan, said the council's statement would be "taken very seriously" and considered by the VHI board at its next meeting. He would not say if he would be recommending to the board that negotiations with the IHAI to resolve the dispute should restart.

Negotiations on fixing prices for 1996 broke down in February and there have been no contacts since. The IHAI says it is willing to enter negotiations at any time.

Since the breakdown of the agreement between the VHI and the IHAI, patients are assigning the benefits of their cover to the hospital for the purpose of the treatment. "The arrangement is working satisfactorily," said Mr Michael Heavey of the IHAI. "The patients are being asked to pay on average £3 to £5 per day and it's not a problem for them." There had been no fall in the number of patients seeking treatment in the hospitals concerned, he said.

Mr Duncan said the VHI had "relatively little feedback" from subscribers about having to pay part of their bills. "Subscribers would obviously prefer if there was a settlement but I think we are getting support for the view that it is right in principle that we try to control costs. It has not become a major issue," he said.

Both the hospitals and the VHI are, their representatives said, not entirely dissatisfied with the current lack of agreement. "Hospitals can now focus on caring for patients," Mr Heavey said. Mr Duncan said it was "true that we are not paying for this year's inflation." (The VHI is still paying the 1995 rates.) "But it's hard to know if we are saving money. Obviously in the short term we are, but over the year as a whole it could cost us a slight amount."

Mr Duncan said he was not concerned that the dispute might lead to members letting their policies lapse.

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