Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 229: To ask the Minister for Health, further to Parliamentary Question No. 1002 of 14 September 2011, when a reply will issue from the Health Service Executive. [36859/11]

James Reilly (Dublin North, Fine Gael)
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I apologise for the delay in responding to the Deputy in relation to his question of the 14th September regarding savings that could be made if charges based on the full economic cost to all use of beds in public and voluntary hospitals for the purposes of private medical practice.

Charging the full economic cost for all use of beds in public and voluntary hospitals for the purpose of private medical practice would involve two changes to the current system: (i) raising the charges to reflect the full costs of treatment and (ii) revising the bed designation system to allow charges for all private patients in public hospitals. The issue of the level of private patient charges was examined in the Department's 2010 'Value for Money and Policy Review of the Economic Cost and Charges Associated with Private and Semi-Private Treatment Services in Public Hospitals'. The Review recommended a refined per diem costing methodology which allowed for higher private patient charges in 2011 and 2012 for the purposes of generating revenue and reducing the previous subsidy for private treatment. The total increase in income was estimated to be €93m. An increase of €75m was targeted for recovery in 2011 (an overall increase of 21%) and a further increase in the charges will be applied for 2012 which will close the subsidy to private treatment and generate an estimated additional €18m for the health system.

In order to control the level of private activity in publicly-funded hospitals and to help ensure equitable access for public patients to services in these facilities, a system of bed designation is operated in public hospitals. The regulations underpinning this system stipulate that hospitals can only apply charges to private patients when they are treated in designated private or semi-private beds. Approximately 20% of public hospital beds are designated as private. The Comptroller and Auditor General has previously found that charges are not raised in respect of about half of all private patients because they are not occupying private designated beds.

In excess of €350m is currently raised in private health insurance charges. On the basis that only 50% of private patients are currently charged and that charges will be further increased in 2012 to reflect the full average cost, it is estimated that approx. €370m could be saved through charging the full average cost for all private treatment.