Brian O'Shea (Waterford, Labour)
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Question 82: To ask the Minister for Health and Children the position regarding the tendering process for the co-location of private hospitals on public hospital grounds; her views on reports of a number of high profile medical operators that have pulled out of the tendering process; and if she will make a statement on the matter. [41458/06]

Arthur Morgan (Louth, Sinn Fein)
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Question 130: To ask the Minister for Health and Children if there is a target date for the negotiation and signing of detailed contracts for successful bidders for the development of private hospitals on public hospital sites under the co-location scheme; and if she will make a statement on the matter. [41456/06]

Fergus O'Dowd (Louth, Fine Gael)
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Question 157: To ask the Minister for Health and Children her view on the opinion that her co-location plan to build private hospitals on the grounds of public hospitals will create a difficulty for other hospitals in the same region in recruiting consultant staff and the possibility of a reduction in services as a result of this; and if she will make a statement on the matter. [41425/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 82, 130 and 157 together.

The Health Services Executive is currently undertaking a procurement exercise to select consortia to build and operate private hospitals on 10 public hospital sites utilising the competitive dialogue tendering process. Invitations to participate in dialogue issued to pre-qualified bidders in mid September 2006 with a deadline to submit outline proposals by 19th October 2006. The HSE has evaluated the outline proposals that it received and has recently completed the selection of short-listed bidders who will be invited to continue in the competitive dialogue phase. Some of the bidders withdrew from the procurement process for commercial reasons.

I was informed by the HSE yesterday that the co location initiative will not be proceeding on two public hospital sites at this time. The sites in question are Galway University Hospitals and Letterkenny General Hospital.

The key objective of the competitive dialogue phase is to explore different options for meeting the core requirements identified by the HSE in respect of each remaining site. The preferred bidders will then be invited to tender to build and operate private hospitals in accordance with the specifications determined by the HSE. The assessment of each proposal will involve a vigorous and comprehensive value for money assessment. The HSE envisages that the award of contracts will be made in the first quarter of 2007.

The HSE is working towards having consultants providing services as part of a team and hospitals operating as part of a network within a region. This is primarily aimed at improving patient care but it will also avoid the emergence of the type of problems envisaged by the Deputy.