Simon Harris (Wicklow, Fine Gael) | Oireachtas source

There is a letter. If it has not gone out, it will be with the Deputy tomorrow. I apologise to him about that. Following negotiations between the HSE, supported by my Department and the private hospitals, an overarching agreement with the 18 private acute hospitals was agreed at the end of March. The details of the arrangement are contained in the heads of terms, which I laid before the Houses of the Oireachtas on 16 April. Under the agreement, payment to the private hospitals will be on a cost-only, open-book model, whereby the hospitals will be reimbursed only for the operating costs properly incurred during the period. The costs that will be covered will be limited to the normal costs of operating the hospital, which are set out in the heads of terms. Therefore, where fees, rent or interest payments relate to the ongoing functioning of the hospital, they will be included in the cost. However, in direct answer to the Deputy's question, any intra-company interest payments are excluded. The rent and interest payments apply to pre-existing arrangements. The amount will be validated, assessed and paid to the extent that it is a proper operating expense for the hospital in line with the heads of terms. This applies regardless of who is the beneficiary. Final costs will be verified by independent firms of accountants appointed by the HSE and the private hospitals. There is an arbitration mechanism in place in the event of any disagreement. Staff continue to be employees of the private hospital. The heads of terms provide that the HSE will reimburse the costs of paying the salaries of staff and senior management at the private hospitals only at the prevailing rates and up to a maximum of €200,000 per annum.

The rest of the Deputy's questions will be answered in writing. I am sorry he has not received that letter so far.

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