Jonathan O'Brien (Cork North Central, Sinn Fein)
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Question 81: To ask the Minister for Health and Children the position regarding the implications of the closure of the Cork Medical Centre; and if he will make a statement on the matter. [7544/11]

James Reilly (Dublin North, Fine Gael)
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I met with representatives of the Cork Medical Centre on 10 March 2011 and explained that I could not intervene in what are commercial decisions for the VHI, but that I would discuss the issue with the VHI.

At a meeting with the Chairman and Chief Executive of the VHI on 11 March 2011, I expressed my disappointment with the decision taken by the VHI in relation to the Cork Medical Centre, which would lead to the closure of this modern facility and a consequent loss of jobs.

VHI has stated that it considers there is sufficient private hospital capacity in the Cork area at the present time to service the healthcare needs of its customers.

While it is not appropriate for me to intervene in the decisions of the VHI as to which health service providers it makes arrangements with on behalf of its customers, I am anxious to deal with the perceived dominance of the VHI in the private health insurance market. In that regard, I have instructed my officials to proceed with the appointment of financial and legal advisors to examine options for the rebalancing of the market, with a view to addressing this position.