Vhi Healthcare criticises 'hit and run' VIVAS buy
Vhi Healthcare has today criticised what is has called the "hit and run" approach to companies entering the Irish health insurance market.
Responding to the recent purchase of VIVAS Health by Hibernian, Vincent Sheridan, chief executive of Vhi Healthcare, commented: "Vhi Healthcare welcomes Hibernian to the health insurance market. However we feel there is a real need to strengthen the regulation in this market to prevent the type of "hit and run" approach which has characterised the new entrants to the private health insurance market to date.
"This would ensure real competition in the market, to the benefit of consumers rather than companies."
"The sale of VIVAS was entirely predictable as we were always of the view that the company had been set up to be sold, and particularly since they have fallen well short of all the targets they set prior to entering the market."
"Competition which concentrates solely on risk selection is highly inefficient and brings no lasting benefit to consumers. We welcome competition which seeks to maximise efficiency in the market and which helps improve the quality and reduce the cost of healthcare.
"Unfortunately this has not been a feature of competition in the market to date nor is such competition encouraged by the current regulatory structure which encourages and rewards such risk selection."
"Vhi Healthcare remains the only not for profit, dedicated Irish health insurer in the market and will continue to serve the needs of our 1.57 million members over the next 50 years as we have done over the past 50."
