The co-location process could result in more private beds than anticipated. David Labanyireports.
At least two new sites for private hospitals on public hospital grounds may be offered to private consortiums later this year.
This would bring to 12 the number of public hospital sites made available.
The Irish Timesunderstands that sites at hospitals in the midlands and southwest are under consideration for inclusion in a second tender round. This round will also invite contractors and investors to tender for a proposed 116-bed hospital on the grounds of University College Hospital Galway and a second hospital in the grounds of Letterkenny General Hospital.
Neither of these attracted suitable tenders in the first round and were withdrawn from the first round tender process which is due to be completed when contracts are signed in April.
It has also been learned that the co-location process could result in considerably more private beds than anticipated when the Minister for Health, Mary Harney, first announced her plan in July.
Between 1,200 and 1,400 beds are now expected to be provided by the eight hospitals under tender, an increase on the 1,000 beds envisaged from 10 new hospitals. The minimum size of a new hospital on one of these sites is based on the number of private beds in the neighbouring public hospital.
The eight public hospital sites on which it is planned to sign contracts are the Mid-Western Regional Hospital in Limerick, Waterford Regional Hospital, Cork University Hospital, Sligo General Hospital, St James's Hospital, Beaumont Hospital, Connolly Hospital and Tallaght Hospital in Dublin.
The HSE has narrowed down over 50 expressions of interest to no more than three tenders per site.
Five firms are involved in the tender process - the Bon Secours Group, the Beacon Group, Capio, Mater Private and Mount Carmel (formerly Harlequin).
The Beacon group has the largest number of tenders entered with six.
Later this week project documents will be issued to the shortlisted bidders for each of the eight sites.
The HSE says the first private beds should come on stream within the next "20-30 months" or early 2009. The recently opened Hermitage in Lucan was constructed in just over 20 months.
The HSE has also reiterated that private consortiums will not be able to buy any of the public hospital land and will operate on the basis of long-term leases.
Under the tender terms, private hospitals built on these sites must make 20 per cent of their capacity available to their neighbouring hospital, at a 10 per cent discount on the cost charged to a health insurer.
The tender terms also oblige the private hospitals to admit any patient from the emergency unit who wants to be treated privately on a 24/7 basis.
The terms also stipulate that the new private hospitals must make a minimum contribution towards the training and development of medical staff and research projects.
A cost-benefit analysis on the co-location project and a National Treasury Management Finance Agency study on a public sector comparitor, which would be carried out for a public private partnership, will be published in May after the contracts are signed, according to the HSE.
The investors in the successful bids to build the new hospitals will qualify for tax breaks which will allow the investors to claim back up to 42 per cent of the capital investment in the new hospital over seven years.
The Department of Health estimates the cost of the income foregone by at least 1,000 private beds moving to the new hospitals will be €111 million per year. This shortfall will be made up by the Exchequer.