Private hospital backs VHI in not extending cover

A CORK-BASED private hospital has backed VHI’s decision not to cover any new private hospitals in the city.

In ads published today, Shanakiel Hospital claims “loss-making, state-owned private health insurer” VHI Healthcare was being put under “political and other pressure” to underwrite a new private hospital.

It said if successful, this lobbying would “ultimately cost taxpayers dearly” because the insurer could not afford to underwrite new private developments.

“With less money in the private health insurance system further state subsidy (via loss-making VHI) would be required to create new jobs at new private developments while displacing existing jobs,” the ad reads.

“A recent newspaper report states that a 100-bed new private hospital would cost state-owned VHI €50 million per annum, adding to its losses,” it says.

While it does not say whether there are enough private hospitals in Cork, Shanakiel says waiting lists in the city are currently well under 30 days.

“In the post-Celtic Tiger IMF-directed Ireland, can state-subsidy via VHI be justified for additional private hospital capacity?” it asks.

So far three private healthcare providers have been refused cover by VHI for new facilities in Cork city in the past year. Cork Medical Centre, backed by Sheehan Medical, closed in March after VHI refused to provide cover for customers at the facility. The Mater Private proposed to re-open the failed unit at Citygate, Mahon, but suffered the same decision. Bon Secours was also refused cover for an €80m extension at its Cork hospital.

Mater Private last night claimed VHI had not engaged in any discussion with the hospital on price. “It seems that they’re not prepared to negotiate on price because they say there are too many public and private beds in Cork, and that no more are needed,” it said.