THE VOLUNTARY Health Insurance company (VHI) has warned its 1.2 million members that they will have to settle their accounts directly with 18 private hospitals from April 4th next and claim reimbursement later from the VHI.
This follows the failure to reach agreement with the Independent Hospitals Association of Ireland (IHAI) on a price in 1996. The hospitals include the Blackrock Clinic and the Mount Carmel and St John of God hospitals in Dublin, as well as the Bon Secours hospitals in Dublin, Cork, Tralee and Tuam.
Mr Michael Heavey, chief executive officer of the IHAI, said last night the VHI was using its monopoly position to threaten the private hospitals and restrict the range of medical care available to its members.
The VHI was creating "extreme discomfort" for its members by obliging them to pay the entire bill as they leave the hospital and recoup the money from the insurance company at some unspecified time in the future, he said.
The VHI medical director Dr Bernadette Carr, disputed this last night. She said the VHI calculated that if it gave in to the IHAI demands, there would have to be an immediate increase in VHI premiums of 10 per cent.
Dr Carr added "Our position must remain firm. In the interests of our members, VHI must seek to influence costs and it is not possible to meet excessive funding demands."
Dr Carr told The Irish Times that the VHI had been forced to place advertisements in this morning's newspapers because of an advertisement by the IHAI last week, which announced a unilateral 3.5 per cent increase. "We have no option but to inform our members that the terms of their cover have been changed."
This action potentially constitutes a case of price fixing, claimed Dr Carr. The VHI accordingly is instituting proceedings against the IHAI in an effort to ensure that the normal rules of competition, rather than the IHAI, determine the rates charged.
The IHAI, for its part, has written to the Minister for Enterprise and Employment, Mr Bruton, asking to refer VHI practices to the Competition Authority.
VHI agreements with Health Board hospitals and a number of private hospitals are unaffected by the arrangements outlined in this morning's advertisement and full cover continues to be provided for VHI members.