The management committee of the new clinic was due to meet last night under chairman Dr Ed Walsh, former president of the University of Limerick, to decide if the project is economically viable in the light of the BUPA decision.
Adare Manor owner Tom Kane, managing partner of the clinic group, said the project was now “firmly planted in mid-air”.
Mr Kane said the new insurance situation was a disaster for the promoters of private hospitals and doubted whether such projects could now proceed.
He was also highly critical of the Government plan to locate private hospitals in the grounds of public hospitals. Planning permission has already been granted by Limerick County Council for the Adare private hospital to go ahead.
The 100-room clinic was to employ 380 full-time workers with an annual payroll of €24m.
A spokesperson for BUPA said it was very supportive of new, private hospital developments like the one planned at Adare Manor.