Cork hospital may close after row with VHI

Management at the Cork Medical Centre will make a statement later today on the future of the company after it has been speculated that the country's newest hospital will be forced to close, because of a row with the VHI.

It is feared 75 workers at the Cork Medical Centre in Mahon may lose their jobs, as the future of the hospital hangs in the balance.

The €90m private facility opened only last October and is operated by Sheehan Medical.

The company has been unable to reach an agreement with the country's largest health insurer for cover for its subscribers.

As a result, management at Cork Medical Centre are struggling to see how the company will be able to survive.

However, VHI Healthcare said there is excess capacity in the private hospital marketplace and that it first advised the Cork Medical Centre of this in August 2009.

It said that the developers chose to go ahead with fitting out the new hospital.

Cork Medical Centre is now calling on the in-coming Government to negotiate with the VHI on their behalf and try and convince them to come on board.