11 Mr. Cox asked the Minister for Health if payments made for accommodation of VHI patients in Irish public and private hospitals are now capped; if so, the cap in each case; if he determines the amount each public hospital receives from the total VHI payout in respect of subscribers treated in public facilities; and if so, if the amount received by the public hospitals corresponds with the numbers treated.

101 Mr. Molloy asked the Minister for Health if payments made for accommodation of VHI patients in Irish public and private hospitals are now capped; if so, the cap in each case; if he determines the amount each public hospital receives from the total VHI payout in respect of subscribers treated in public facilities; and if so, if the amount received by the public hospitals corresponds with the numbers treated.

I propose to take Questions Nos. 11 and 101 together.

In recent years arrangements have been made with the VHI whereby an overall cash limit applies in respect of VHI subscribers provided with private or semi-private accommodation in public hospitals. This system is designed to ensure that the income potential of these facilities is achieved to the maximum extent possible, while providing a financial framework within which the VHI can meet the hospital accommodation needs of subscribers and maintain premia at reasonable levels.

An agreed overall cash limit is allocated among the relevant public agencies by my Department having regard to available data on the income generation performance of the agency concerned and its projection of future private activity. I am arranging to have circulated in the Official Report a table which indicates the individual cash limits applying to the agencies concerned in respect of the year to end February 1994.

The aggregate cash limit available for distribution among the agencies in respect of 1993-94 was £50 million and represented an increase of approximately £10 million over the previous year. In agreeing the overall cash limit with the VHI and allocating it among the agencies every effort is made to match the limit with the prospective volume of activity. There are no final figures on VHI payments yet available in respect of the VHI financial year 1993-94.

In regard to private hospitals, the position is that the VHI agrees individual budgets with the hospitals concerned. While I have no direct involvement in this process I am assured that the board take a rigorous approach to cost containment in framing these budgets.

VHI Budgets 1993-94.