Founder of the Galway and Blackrock private clinics James Sheehan has blamed State health policy and the Voluntary Health Insurance (VHI) board for his Galway clinic's decision to make financial cuts, writes Lorna Siggins, Western Correspondent
Siptu says up to 30 jobs are to go, and it has called on Minister for Health Mary Harney to review her plan to allocate State lands for private hospitals. Some 350 people are employed at the 101-bed clinic which was built with tax breaks and opened two years ago by Taoiseach Bertie Ahern.
Mr Sheehan, who is abroad, was unable to confirm the number of job losses yesterday. Staff have been told they will not receive a scheduled pay rise this month, "due to the current serious financial situation".
Mr Sheehan told The Irish Times a combination of the Health Service Executive's (HSE) failure to refer many National Treatment Purchase Fund (NTPF) patients to the private hospital and insufficient insurance cover by the VHI had led to the situation.
The VHI and the Galway Clinic had difficulty reaching an agreement before the private hospital's opening, and the VHI was giving "inadequate remuneration" for many procedures, Mr Sheehan said. "We have treated 10,000 VHI patients in the last two years since we opened, but we are doing that work at a considerable loss."
Bupa was giving adequate insurance cover, but the VHI still had 80 per cent of the market, he said.
The hospital had made half its beds available to the NTPF, but only 7 per cent were taken up, Mr Sheehan said. "For the Minister for Health to float the idea of a third private hospital in Galway is totally incomprehensible on this basis."
A letter signed by interim chief executive Bernadette Teehan said a review of all departments would take place shortly which may lead to some restructuring.
Siptu believes the 30 posts cross a number of disciplines in pharmacy, administration, cleaning and support services. Local union representative and Labour Party councillor Colm Keaveney wants an immediate meeting with hospital management.
In a statement yesterday, the Galway Clinic said it had just completed a review of its first two years in operation. "To ensure the continued success of the clinic, the most advanced of its kind in Ireland, a consolidation programme has been put in place, requiring the amalgamation of a small number of posts," it said.