THE St Francis Medical Centre in Mullingar is threatened with closure, the High Court was told yesterday.
Mr Justice McCracken directed that the centre's claim for almost £8 million compensation against the VHI board be heard as soon, as possible.
Two years ago, in the Supreme Court, the Franciscan Missionaries of Our Lady won a long running legal battle against the VHI. The court decided the matter should go back to the High Court for assessment of the nuns' claim for damages against the VHI.
The nuns say they are entitled to compensation for past losses, calculated at £4.6 million over a five year period, and future losses of £3.1 million. They alleged the activities of the VHI had brought about a disastrous situation.
The centre claimed AIB, its mortgagee, had an order for possession which the nuns had been seeking postponement of for some years. It also alleged the ACC had obtained repossession of X ray equipment.
One Supreme Court judge, Mr Justice O'Flaherty, stated the hospital had been "singled out for special treatment" by the VHI. Mr Justice Blayney, in the same court, said it was extremely doubtful whether the VHI had a right to impose cost controls on hospitals in which members were treated.
Mr Justice Blayney said that after the VHI suffered very substantial losses in 1988 a new agreement was given to private hospitals where a "cash limit" was imposed.
In their High Court claim for loss and damage, the nuns alleged that because of the VHI's breach off duty the hospital had to endure great stress and strain" in attempting to pay its debts as they fell due.
Yesterday, Mr Patrick Keane SC, for the hospital trustees said his clients were anxious to get an early date for the hearing of their damages claim. Closure of the hospital was threatened he added.