Vhi is rejecting the PwC Mahon report

By Gary Culliton.

Vhi Healthcare has informed the Department of Health that it does not agree with the methodology used by PricewaterhouseCoopers (PwC) in reaching its conclusions regarding the need for additional beds and services in Cork.

The Mater Private, Cork, had commissioned a report from PwC to support its application to Vhi for cover for the facility.

According to a statement from the Department in a follow-up response to questioning by Senator Colm Burke at the Joint Oireachtas Health Committee, Vhi believed PwC assumed that privately-insured members should receive hospital care only in private hospitals and not avail of private beds in the public hospitals, which account for 43 per cent of the private beds available nationally.

Vhi has indicated that it did not believe that the PwC estimate regarding future bed requirements was supported by reliable evidence. Furthermore, the insurer believed that the most reliable way of measuring adequacy of supply of services in a region were by occupancy levels and waiting times. It considered that currently, occupancy levels in the region were low and the majority of its members were admitted to hospital within four weeks of visiting their consultant.

Based on Vhi’s claims data, the health insurer has estimated occupancy statistics for beds in private hospitals for all of the insured population, which showed inpatient occupancy and day care occupancy to be low. Nationally, inpatient occupancy was 52 per cent and in Munster it was 48 per cent. The occupancy figures for day care were 48 per cent and 35 per cent, respectively.

The Minister for Health Dr James Reilly said he was disappointed that a new 75-bed facility at Mahon in Cork “will not be available to the people of the Munster region”.

Vhi has indicated it will not provide cover for the new private hospital beds.

gary.culliton@imt.ie