The Bon Secours Hospital in Cork said yesterday it had agreed to defer a break with the VHI which was due to take effect on May 2nd.
The hospital argues that the rates being offered by the health insurer do not cover its costs. Following a meeting with local public representatives, the Bon Secours says it will resume discussions with the VHI.
In a statement, the hospital said its decision was taken in the interests of its patients, though this would leave it in a loss-making situation for a further three months.