Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 298: To ask the Minister for Health and Children the value of the benefit to public funds if charges based on the full economic cost were applied to all use of beds in public and voluntary hospitals in the State for the purposes of private medical practice. [31630/10]

Mary Harney (Dublin Mid West, Independent)
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The issue of charging the full economic cost for private hospital treatment is considered in the 'Value for Money and Policy Review of the Economic Cost and Charges Associated with Private and Semi-Private Treatment Services in Public Hospitals' which is currently being undertaken by my Department. The Review is being conducted under the auspices of the Government's Value for Money & Policy Review Initiative 2009-2011.

The Interim Report of this Review was published in February of this year. The key elements of the Report are a revised methodology for establishing the average cost of private and semi-private patients and the calculation of the gap that exists between current charges and the cost. It also outlines a number of options for the level of inpatient charge for 2010, as well as the potential implications of increases.

The Report estimated that approximately €305.5 million would be generated in 2010 if the economic cost was charged. This estimate was based on a revised calculation of the cost per bed day and applied the full cost charge to chargeable beds under the current bed designation policy. This policy stipulates that charges can only be applied to private patients in designated private beds. As a comparative figure, the Interim Report estimated that approximately €255 million was collected in 2009 under the current charging regime.

The final report of the Review is currently being finalised. The methodology for calculating the economic charge will be further reviewed in this Report and the estimate may be refined as a result. It is anticipated that the final report of the Review will be submitted to Government in September, after which it will be published.