Oireachtas Joint and Select Committees

Wednesday, 18 January 2017

Select Committee on the Future of Healthcare

Health Service Reform: Private Hospitals Association

9:00 am

Mr. Brian Fitzgerald:

The Deputy is getting into the area of a fee for service model versus a capitation model. In Ireland, the public health system is pretty much still under the capitation model and if one looks at fee for service, one goes to North America. There are many examples there of what I believe the Deputy is referring to, which is overtesting. We cannot overtest for the simple reason that our main revenue comes from insurers in two streams. One is a fixed price procedure, so if we do a hip replacement, for example, we get one price, regardless of the length of stay of the patient or how many tests are done. The second area in which we get paid is per diemper night, similar to the public system, and again we do not get any extra revenue for the number of tests we perform.