THE VHI has rejected a demand by hospital consultants for a 4.5 per cent increase for 1998. At a board meeting on Thursday, it was decided that consultants would be offered 3 per cent next year, the same amount offered this year.
The Irish Hospital Consultants Association (IHCA) had voted last weekend to accept a 3 per cent offer from the VHI, but only for one year. Agreements are normally made for two years and the consultants requested 4.5 per cent for the second year.
According to VHI sources, the company believed the 3 per cent offer was "very reasonable" and is willing to insert a clause in the agreement stating that the figure would increase if inflation rose above a certain level.
The IHCA said it had no comment to make yesterday, as it had not been formally told of the VHI's decision. But last weekend at an extraordinary general meeting of the association, the president, Dr James Masterson, said the VHI offer of 3 per cent for two years did not take into account the very real increase in medical inflation.
"If we cannot reach agreement with the VHI on a better offer, then we face the prospect of reintroducing balanced billing which is not in the best interests of our patients and which is certainly not a preferred option of our members" he said.
The Irish Medical Organisation is not recommending the offer tot consultants, but has told members to examine it in detail before taking any decision. "We are not happy with 3 per cent," Mr Conal Devine, the IMO's industrial relations officer, said. "It does not take a number of factors into ace count including the soaring costs of medical indemnity."
Meanwhile, sources in the VHI said there has been no indication yet of who will replace the chairman, Mr Noel Hanlon, who retires next Friday.