Consultants query MDU financial credibility

A STRING of resignations by highly respected non-executive directors of the Medical Defence Union (MDU) has been described as a “serious blow to their financial credibility” by the Irish Hospital Consultants Association (IHCA).

Three directors resigned in recent days over corporate governance issues, including disclosure of executive salaries, at the medical indemnity organisation.

The MDU is embroiled in a major row with the IHCA and the Government over its refusal to provide cover to scores of Irish consultants in cases of alleged malpractice. A fourth MDU director resigned a number of months ago over similar corporate governance issues.

Corporate governance is the term used in business and financial circles to describe the process for ensuring efficient management of corporations by the use of incentive mechanisms, like contracts, organisational designs and legislation. It can also be described as the relationship of a company to its shareholders.

The MDU refused indemnity cover to up to 81 Irish hospital consultants who were paid-up members of the organisation when alleged incidents occurred. They are all now facing litigation but the MDU argued that such “historic liabilities” should have been taken on by the Irish Government when a State insurance scheme was introduced in February 2004.