VHI rejects private hospital move

A €90m privately-developed hospital with the potential to create 250 jobs is to remain closed after the State-owned VHI said the facility is not required to meet its needs in Munster.

The Irish Examiner has confirmed that an application from Mater Private Cork to reopen the former Cork Medical Centre in Mahon as a 102-bed private hospital has been refused cover by the VHI.

It is understood that a letter was sent on Friday by the VHI outlining the reasons for refusal to the Mater Private, which hoped to build a bridgehead into the lucrative private health care market in Munster which is dominated by the rival Bon Secours Group.