Five private firms compete to manage two hospitals

ONE Irish and four British private companies are vying to win a lucrative contract to effectively manage two of Ireland’s largest regional hospitals for the next 15 months.

Health Minister James Reilly has confirmed the shortlist for the controversial project, which will focus on University Hospital Galway (UHG) as well as the Mid-Western Regional Hospital in Limerick.

The names of the companies have not yet been revealed as no decision on the winning applicant has been made. However, the successful firm will receive the lucrative contract at the end of next week.

The firms are competing for the right to put in place a chief executive at UHG, and a chief executive, chief financial officer and chief operating officer at the Mid-Western.

UHG’s new management structure will also affect linked facilities at Roscommon, Merlin Park, Portiuncula and Ennis.

It is understood in-house applicants for the chief operating officer and chief financial officer positions at UHG were rubber-stamped by the HSE West earlier this month after at least two rounds of interviews.

These respective individuals are Tony Canavan, manager of the primary, community and continuing care service in Galway and a former senior manager at Mayo General; and a high-ranking internal UHG candidate. However, it is unclear whether these individuals will be all-owed to take up the posts.

Sources told the Irish Examiner the public service salary ceiling is a key reason for the failure to find a chief executive for either hospital.

It is alleged that the Department of Health gave this responsibility to private firms as they can provide a higher salary.

However, speaking on Galway Bay FM, Dr Reilly said the private management plan should be seen as “a good news story” as it will improve standards at the hospitals.

“This isn’t taking anyone’s job, there’s nobody in these jobs. This is a good news story, both of these hospitals need all the support they can get because they’re struggling at the moment,” he said.

“There is no question about us privatising the health service.”

Trade union IMPACT has said it may refuse to co-operate with management connected to the private company which wins the tender should the Government enforce the plan, as it believes the policy is in breach of the Croke Park Agreement.

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