Billy Kelleher (Cork North Central, Fianna Fail)
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To ask the Minister for Health the basis on which the figure of €143m was arrived at savings to be achieved on the generation and collection of private income in budget 2012; if he expects to achieve this figure; the contacts he has held with insurance companies before arriving at the figure; and if he will make a statement on the matter. [37138/12]

James Reilly (Dublin North, Fine Gael)
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As part of Budget 2012, I outlined savings of €143m to be generated through a combination of increased charges for private patients, improved collection of income and changes to bed designation legislation. This figure was determined as part of the normal budgetary process and, therefore, was not subject to discussions with insurance companies.

From 1 January 2012, the charges for patients who choose to be treated on a private basis in public hospitals increased by between 3% and 5% depending on the category of hospital. The increase in charges is in keeping with the long-standing policy of moving towards recovering the full economic cost of providing treatment to private patients in public hospitals. It is anticipated that the increased charges will yield additional revenue in the region of €18 million in 2012. With regard to the introduction of new legislation to allow charges to be raised in respect of all private patients in public hospitals, work on this matter is proceeding in preparation for 2013. In the meantime, in order to raise the resources required for 2012, the Department has agreed a system of improved cash-flow and accelerated payment in principle with private health insurance providers which will provide a once-off cash flow benefit in 2012. The details of the accelerated payment system are being finalised with the health insurers at present.