Labour questions hospital tax breaks
The party’s finance spokesperson, Joan Burton, raised the issue as it emerged that a patient due to undergo surgery at a private hospital under the National Treatment Purchase Fund (NTPF) was turned away this week because the funding had not been agreed. The fund has treated around 12,000 patients this year but more procedures are to be done in private hospitals because of fears that too many public beds are being used.
The Government approved tax breaks for developing new private hospitals three years ago. Health Minister Mary Harney announced in July that such facilities could be built on the grounds of public hospitals to free up 1,000 public health service beds.
Ms Burton said Ms Harney and Finance Minister Brian Cowen should explain the ramifications of the tax breaks policy to the Oireachtas Finance and Public Services Committee.
“I have no doubt that such tax break investment will be hugely popular with investors but it’s not clear if any detailed work has been carried out on the implications for health service provision,” she said.
“No estimates have been provided of the cost of such tax expenditures to taxpayers, as compared with the benefits generated by new private hospitals, nor whether admissions to such hospitals will be based on medical need or on ability to pay,” Ms Burton said.
She said recent investigations into the Leas Cross nursing home show that important policy issues arise when the provision of facilities appears to be driven by tax breaks rather than quality of care.
Her party colleague Liz McManus has criticised the NTPF and claims some private hospitals have stopped taking referrals because of failure to agree on payments. But Progressive Democrats TD Fiona O’Malley accused the Labour Party of having no alternative policy suggestions.
