Losses for VHI Healthcare have fallen dramatically, according to its annual results, which show an overall deficit of €3.1m for 2010, compared with €41.7m in 2009.
The company says that while the financial performance in 2010 was 'an improvement', the company still incurred significant underwriting losses of €25m. 'We still have to improve our annual performance by €60m to fund our customers' healthcare needs,' it said.
In 2010, the company spent €1.3 billion on healthcare for customers, down 1.4% on the previous year. The reduction in costs was due largely to a reduction in rates paid to private hospitals, consultants' fees, and the cost of private beds in public hospitals.
Speaking about the Government's plan for the heatlhcare system, the VHI described it as 'radical and ambitious'.
At the launch of the annual results VHI chief executive Jimmy Tolan warned that a break-up of VHI Healthcare 'would increase healthcare costs for our customers and also lower investment in prevention and community based services'.
