A proposed multimillion euro private hospital in Limerick has been abandoned, the Mid Western Health Board announced yesterday.
Board members were told at a monthly meeting that the Bon Secours Health System and BUPA Healthcare Ireland Ltd had withdrawn from a proposed private hospital development in Limerick.
Bon Secours and BUPA had been negotiating with the health board to build the hospital on a 7½ acre site in the grounds of the region's main acute-care hospital, the Mid West Regional Hospital, at Dorradoyle, in Limerick.
The private hospital, which could have cost between €30 million and €40 million to develop, was expected to comprise 75 in-patient and 25 day-case beds.
The services provided would have complemented those available in the regional hospital.
Mr John O'Brien, assistant chief executive of the health board, said his understanding from talking to the CEO of the Bon Secours Health System was that "discussions with VHI did not bear fruit".
Mr O'Brien said that the VHI was bound to a Price Waterhouse Cooper report it had commissioned on private bed requirements between 2002 and 2006.
Following the Price Waterhouse Cooper study, the VHI felt there were sufficient private beds in the mid-west region.
The health board will now seek suitable partners to develop a private hospital in Limerick. A report on the matter and on the use of land at the regional hospital will be presented to the board at its next meeting.
"The Bons Secours and BUPA have expressed regret at the delay in reaching their decision," added Mr O'Brien.
At the board's monthly meeting at St Joseph's Hospital in Limerick, chairman Mr Sean Hillary said: "After so many years of diddling around the place we have a decision like this . . . it is not good enough."
Ms Jan O'Sullivan (Lab) asked for an explanation for the decision not to undertake the project.
Councillor Mr Richard Butler (FG) said:
"This is bad news. This was really needed in this region. My understanding of the situation is that one of the major reasons was that the VHI refused to give full cover in the hospital. This needs to be looked at, it is an awful kick in the teeth."