A recently built private hospital in Ireland may have to close if management cannot strike a deal with a health insurance company.

Dr Joseph Sheehan who owns and operates the Sheehan Medical Group in Cork, Southern Ireland first suggested that the Cork Medical be built in 2007. It cost of 90 million euros. However the healthcare provider who Dr. Sheehan dealt with only gave a verbal pledge that his patients would be covered.

Dr. Sheehan told reporters: “We would love it in writing . . . VHI won’t give approval until you are built and functioning because they want to see the quality – so you have no choice, you are never going to get anything in writing until you are up and running.”

In response to this the insurance company said that there was more than enough room in the private hospital market, something strongly disputed by Dr. Sheehan. The latter said that hospital provision in both Cork and Munster was seriously under resourced; the new hospital aimed to fill this gap.

To date, nothing has been resolved.

The Irish health care system is already under pressure with more and more people now finding it difficult to pay for health insurance.

Originally, individuals paid a standard fee to cover all medical treatment, but the Irish Government decided a few years ago to essentially privatise the system, which left many poorer people in difficulties.