Press Release - Soaring medical indemnity costs are driving consultants out of the country

Soaring medical indemnity costs are driving consultants out of the country

22nd January 2015: The Joint Oireachtas Committee on Health and Children heard today that the exponential increase in clinical indemnity costs is forcing consultants out of the private sector to look for work elsewhere. Speaking at the committee hearing, the Irish Hospitals Consultants Association (IHCA) said that the cost of clinical indemnity has doubled for many specialties in recent years with it increasing by an average of 40% in 2014 alone. The effect of these increases means indemnity charges are at unaffordable levels for consultants in private practice.

The medical landscape in Ireland is changing. There are now no full time private practice obstetricians in Ireland as their clinical indemnity would be in excess of €335,000. Other surgical specialities could soon find themselves in the same position as the cost of clinical indemnity is becoming unaffordable, costing up to €104,000 – a 100% increase in the last two years.

The need to reform the law in this area was identified as an urgent requirement over a decade ago when the State Claims Agency Clinical Indemnity Scheme was established. It was then recognised that €100,000 was the limit of affordability for Obstetrics and the annual charge for surgery was about €30,000 at that time. The current costs are approximately three times those levels.

It is estimated that in excess of twenty consultants ceased private practice in 2014 because of the unaffordable cost of indemnity and more are planning to cease in 2015 if these costs are not addressed urgently. If unaddressed, the current situation will result in fewer patients being treated in private hospitals at a higher cost, and as a result more patients will be forced to seek medical care in public hospitals which will increase the already growing waiting lists and chronic overcrowding.

Mr Maurice F Neligan, Consultant Orthopaedic Surgeon at the Beacon Clinic and IHCA Council member, who addressed the Joint Oireachtas Committee on Health today said: “The cost of clinical indemnity is now unrealistic and unaffordable for most consultants in private practice. The effects of this are that our highly skilled consultant colleagues are leaving practice for overseas opportunities and others have retired earlier than planned. Most importantly the unfolding indemnity crisis will adversely impact on patients, as waiting lists in public hospital for surgery increased by 20% in the past year with catastrophic effects for all patients.” 

The IHCA has been in regular contact with the Minister for Health and his senior officials as well as the State Claims Agency. The department is analysing the potential benefit of reducing the caps in order to reduce the indemnity charges. The benefit of the SCA providing full indemnity on a cost basis for Consultants in private practice has also been discussed. It is the view of the private practice Consultants that this option should be assessed further in conjunction with the Association, the Department for Health and the SCA.

ENDS

For more information

James Dunny, FleishmanHillard, +353 86 388 3903