Gerry Adams (Louth, Sinn Fein)
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To ask the Minister for Health the progress he has made in his plans to charge health insurers for the cost of beds they use in public hospitals ; the amount of the planned €143 million in savings will actually be realised in 2012. [44121/12]

James Reilly (Dublin North, Fine Gael)
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As part of Budget 2012, Minister Reilly announced that he intended to bring forward legislation to provide for the charging of all private patients in public hospitals, irrespective of whether they occupied a public or a private bed. In doing so, he was conscious of the significant potential cost implications for private health insurers.

In discussions with the insurers, the Minister indicated that he would be prepared to postpone implementation of the legislation until 2013 provided that the funds targeted in Budget 2012 for the current year could be raised through a system of improved cashflow.

With this in mind, the Department of Health has now agreed in principle a system of improved cash-flow and accelerated payment with private health insurers. This will provide a once-off cash flow benefit in 2012 in the order of €125m. The details of the accelerated payment arrangements are at an advanced stage and are being finalised with the health insurers at present. Maintenance charges for private in-patient services in respect of private, semi-private and day-care accommodation in categories 1 and 2 public hospitals were increased with effect from 1 January 2012. It is anticipated that the increased charges will yield additional revenue in the region of €18 million in 2012.