Plans by Minister for Health Mary Harney to have private hospitals built on the grounds of 10 public hospital sites across the State have been dealt a blow after no developer was interested in building private facilities adjacent to public hospitals in either Galway or Letterkenny.
The Health Service Executive confirmed yesterday that a suitable partner could not be found to build private hospitals on the grounds of University College Hospital Galway (UCHG) or Letterkenny General Hospital.
"The procurement process had reached the point where it just did not yield a suitable partner for either the Letterkenny or Galway sites," it said.
However, it said the eight other public hospital sites on which it was planned to co-locate private hospitals "will go forward".
These eight sites include the grounds of the Mid-Western Regional Hospital in Limerick, Waterford Regional Hospital, Cork University Hospital, Sligo General Hospital, St James's Hospital, Beaumont Hospital, Connolly Hospital and Tallaght Hospital in Dublin.
While the Mater private hospital initially sought to develop a hospital on the Galway site, it and other private-sector companies pulled out, believing it would not be a viable proposition as Galway city already has two private hospitals.
Plans had also been announced for a new private hospital in Letterkenny prior to Ms Harney's announcement in July 2005 of her plans to have private hospitals built on the sites of 10 large public hospitals.
She wanted to ensure public hospitals clawed back 1,000 beds for public patients by transferring private patients to the new private hospitals, which would be built by investors on the sites of public hospitals.
Last May the HSE sought expressions of interest from the private sector to develop "co-located" hospitals on the 10 sites. It received more than 50 proposals, including ones for the Galway and Letterkenny sites.
Ms Harney told the Dáil that the HSE had informed her on Monday, however, that "as a result of the ongoing public procurement exercise, the co-location initiative will not be proceeding on two public hospital sites at this time".
She said "some of the bidders withdrew from the procurement process for commercial reasons". Whether this results in fewer than 1,000 beds now being freed up in public hospitals remains to be seen.
Galway East Progressive Democrats TD Noel Grealish said yesterday that the company that successfully tendered for Galway and a number of other sites, including Letterkenny, announced earlier this week that it would be pulling out of the projects because "they feel it would not be economically viable when there are so many private hospitals in Ireland".
The construction of a private hospital on the campus of UCHG was strongly opposed by Labour and Fine Gael members of the HSE West regional health forum. The health forum had unanimously endorsed a motion by Independent city councillor Catherine Connolly against the development of such a hospital and had called on the Government not to proceed with it.
Cllr Connolly said she welcomed what she called Ms Harney's "U-turn" over the private hospital at UCHG. She would ask now that resources and staff be provided to open up empty beds at UCHG .
Welcoming Ms Harney's decision not to go ahead with the private hospital at UCHG, Fine Gael county councillor Fidelma Healy Eames said it was a victory for the people of Galway.