FEES charged by private hospitals are to be increased by up to 5 per cent from today, the second increase in a year. VHI patients will now have to pay up to £80 to make up the shortfall in their bills.
The Independent Hospital Association of Ireland (IHAI) defended the move yesterday, saying it had postponed the increase until now, hoping the VHI would enter into talks. Some 16 hospitals will be increasing their charges.
"We very much regret that the hospitals have to put this price increase in place," said Mr Michael Heavey, the IHAI chief executive. "However, we have not had an increase in payment from the VHI since January 1995 and we must do it to survive. We feel it is unfair, particularly since the VHI has received premium increases of over 12 per cent on subscriptions in that time."
He said VHI customers currently receive less insurance cover for attending private hospitals than they did before the VHI applied these premium increases.
Negotiations between the IHAI and the VHI broke down last April after they failed to reach agreement on a price structure for the coming year. When the IHAI announced a 3.5 per cent increase the VHI informed patients that 18 hospitals would be put on what they called a "partially participating basis" and instructed patients' to settle their own bills.
However, the IHAI arranged that patients who gave their VHI benefit to the private hospital would not have to settle their account at the time of discharge. The hospitals then recovered the charge from the insurance company.
The IHAI insists it wants to negotiate with the VHI as an association, not on an individual hospital basis.
The new Fianna Fail spokesman on health, Mr Brian Cowen, said last night the consumer was "paying the price" for this long running row. He called on the Minister for Health to appoint an independent arbitrator to settle the dispute.
Meanwhile, Mr Heavey said the IHAI was delighted with the result of a survey carried out by the VHI which showed very high satisfaction ratings among hospital patients.
Hospitals involved in the fee increase include St Gabriel's, Cabinteely; St Joseph's, Raheny; St Michael's, Dun Laoghaire, all in Dublin; St Joseph's in Sligo; and Shanakiel in Cork.