State's hospitals owed €270m in outstanding debt

HOSPITALS AROUND the State are currently owed over €270 million in outstanding debts, according to new official Department of Health figures.

The department figures show that €162 million is due from private health insurance companies.

Separately, about €59 million is outstanding in payments due in respect of charges which hospitals are obliged to levy on patients involved in road accidents under legislation.

A recent value-for-money review aimed at dealing with the issue of outstanding amounts owed by health insurance companies recommended that hospitals should use new technology rather than paper-based systems for billing, that budgetary incentives and penalties be introduced in relation to income collection, and that payments relating to hospital accommodation be separated or “decoupled” from those with regard to consultants’ private fees.

The Department of Health said in a submission to the Department of Public Expenditure that it was also to analyse the outstanding debt in relation to road accident charges to see what element was collectible and how much should be written off.

“The HSE is preparing to carry out a pilot study in two acute hospitals – Waterford Regional and Cork University – to identify improvements in the existing process that can be rolled out to all hospitals. Possible options include the central management of this debt nationally. The HSE needs to progress the pilot studies in Waterford Regional and Cork University hospitals immediately.”

The department said that discussions would also be required with the Injuries Board “to agree how to proceed on deduction at source”.

The department said the HSE was also entitled to reimbursement under EU regulations for the cost of public services provided to non-resident EU citizens on condition that proper information could be provided as back-up to support the charge.

“In conjunction with the HSE overseas group, the HSE has put in place a process to collect data that will allow the bill back of charges to other EU countries whose residents are treated in Irish public hospitals.

“The current process is manual and will require changes to each hospital’s patient administration and billing system,” the Department of Health said.