Mater set to agree takeover of hospital

MATER Private Healthcare has confirmed its interest in the takeover of a €90 million Cork hospital that closed just five months after it opened.

The Mater has reached “agreement in principle” with John Cleary Developments (JCD), the landlord of the premises that housed the €90m facility which closed in March with the loss of 75 jobs and unsecured liabilities of €5m.

The company behind the CMC development, Sheehan Medical Ltd, blamed its closure on a refusal by the VHI to provide cover at the facility.

Yesterday, Mater Private chief executive, Fergus Clancy, said the successful re-opening of CMC was largely predicated on their ability to offer innovative healthcare.

“Support from the health insurers is most likely to be secured if the services the new hospital offers meet clearly identified needs and offer access to medically innovative services to the people of Cork.”

Mr Clancy said the process would take time and it was unlikely the hospital would re-open in 2011.

The possibility of the hospital being workable in the long term was flagged in a briefing note prepared by the VHI in relation to CMC. It suggested the VHI would react more favourably if the hospital offered medically innovative services.

It also said that while the VHI would not be covering the hospital in 2011, there may be “some opportunities for 2012”.

Yesterday, the VHI said “the situation was the same” in Cork in relation to its view that the private healthcare market has excess capacity.

Sheehan Medical Ltd did not wish to comment on the likelihood of CMC having a future in the hands of private healthcare provider rivals, the Mater Private.

Neither did CMC landlord, John Cleary. However, Atlas Developments Ltd, of which he is a director, lodged a planning application with Cork City Council on April 28 to develop a Central Sterile Supply Department at City Gate, signalling his intention to continue with use of the building as a medical facility.

Last week, staff and suppliers of CMC Operations Ltd, the company set up by the Sheehans to run the facility, were told at a creditors’ meeting that the hospital had closed with unsecured liabilities of €5m, including €3.5m owed to Sheehan Medical Ltd.

Monies outstanding to 75 staff totalled more than €150,000.

Separately, the Bon Secours, Cork’s largest private hospital, is proceeding with an €85m development for which the tender process is under way.

A spokesperson said the hospital had “no comment to make in relation to the future of Cork Medical Centre”.