Sir, I read with interest Nuala O'Faolain's article (April 1st). I should welcome an opportunity to address some of the issues in a way which, perhaps, will reflect a more balanced view. May I first comment on matters relating to Blackrock Clinic.
In terms of the article in the Irish Medical News I made two comments in answer to questions. The first question related to, the fact the VHI was fully reimbursing both in patient and out patient. MRI scans in Cork. This I found. surprising" as it did not pertain elsewhere. Secondly in answer to the question had we spoken to. VHI about MRI, I responded that "I had not spoken to them in years about MRI".
In 1994 after eight years of operation the Blackrock Clinic extinguished its accumulated losses. The shareholders had received no distribution from the clinic. This, changed in 1995 when BUPA who had effectively provided an interest free loan of £3 million via preferred shares, in effect therefore subsidising the VHI, received a preferred dividend.
In general terms, VHI agree that private hospital costs have increased by 3.5 per cent. All the private hospitals ask is that prices are similarly increased. Not an unreasonable position!
The remarks made about private hospitals run by religious. orders are curious. These orders have effectively subsidised health care for many years. There has been no charge for the hours of devoted service by members of, these orders nor the capital cost of providing the hospitals etc.
Finally, the reason for the stand off is as bewildering to private hospitals as it is to Nuala O'Faolain. VHI unilaterally broke off discussions. The cost of a price increase to VHI is 0.3 per cent of VHI's income. Perhaps, the real. motive for VHI's behaviour and motives will emerge through balanced and considered journalism. - Yours, etc.,
Hospital Director,
Blackrock Clinic,
Blackrock,
Co Dublin.