Dinny McGinley (Donegal South West, Fine Gael)
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Question 142: To ask the Minister for Health and Children if she will provide details on the finding that the loss of private bed revenue to hospitals would amount to €111million under her co-location plan; and if she will make a statement on the matter. [41424/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The figure of €111 million is an estimate by Health Service Executive of the amount that the 10 public hospitals selected as sites for co-located private hospitals charged private health insurers in 2005. I was informed by the HSE yesterday that, as a result of the ongoing public procurement exercise, the colocation initiative will not be proceeding on two public hospital sites at this time. These sites in question are Galway University Hospitals and Letterkenny General Hospital. Leaving aside those two hospitals, the figure reduces to €88.6 million.

The loss of private insurance income to public hospitals arising from the colocation initiative must be seen in the context of the freeing up of 1,000 beds that are currently reserved for private patients. It also has to be seen in the context of the significant benefits that the HSE expects to receive in return for the concessions granted to the private operators.