BUPA fees deal puts pressure on VHI

BUPA Ireland has secured a two year full cover deal on fees for hospital consultants. Its competitor, the VHI, has yet to agree a schedule to run until early 1999.

Under the deal announced yesterday, BUPA subscribers will not face any shortfall in cover or balance billing, the company said.

The agreement with the Irish Hospital Consultants' Association (IHCA) covers a schedule of doctors' fees to February, 1999. For the first year, it provides for a 3 per cent increase in fees, which BUPA says "is consistent with the current market fees schedule". This is the same as the VHI's offer.

Of most significance is an agreement for the second year which allows for an increase in fees cover of 3.95 per cent the VHI has failed to secure agreement with consultants for the second year though discussions are continuing.

BUPA Ireland will shortly write to consultants seeking their enrolment, a spokeswoman said. Meanwhile, the company would cover consultant fees at fully participating rates.

"This agreement enables us to make an unequivocal commitment to all BUPA Ireland members," said Mr Martin O'Rourke, managing director of BUPA Ireland.

BUPA will announce today an extended range of community rated health insurance products underpinned by full cover agreements with hospitals and doctors.

It has been welcomed by IHCA genial secretary, Mr Finbarr Fitzpatrick. In the event of the consumer price index exceeding 2.5 per cent during 1997, there would be equivalent compensation in fees, for the second year.

Similarly, if medical malpractice insurance increases by more than 15 per cent, consultants would receive increases. "For the first time, we have got official recognition from a health insurance provider, of the burden of malpractice insurance, he said.

On the VHI's 3 per cent offer for the second year, he reiterated it was unacceptable. Asked if the deal would put pressure on the VHI, he said: "The VHI now has a market rate to match.

While an improved VHI offer had been made to this grouping, it did not match expectations. An agreement was possible, he said, which would clear the way for agreement on the second year schedule.