€200m to pay docs in court victory
Landmark case settled
THE taxpayer will be hit with a bill of almost €200million after thousands of hospital consultants settled a landmark court action, it was confirmed yesterday.
The State is liable for around 2,700 cases after doctors concluded their legal proceedings for breach of contract against the Health Service Executive.
Health Minister Simon Harris said: “Significant savings for the taxpayer will be achieved given the terms of the settlement that has been brokered.
“It also saves all parties from a protracted and costly legal battle.”
The consultants took action after a decision in April 2009 not to pay the final phase of increases provided under the terms of the 2008 medical consultants’ contract.
The dispute was resolved at the High Court yesterday.
Afterwards Mr Harris said the original decision was based upon the dramatically reduced financial resources available to the State as the fiscal crisis was unfolding.
It preceded the introduction of pay reductions for all public servants, including medical consultants, from January 1, 2010. The 10 lead cases before the High Court were representative of some 700 others in the system.
The settlement would also cover the case of up to 2,000 consultants who fall within its terms.
Finance Minister Paschal Donohoe said: “The settlement reflects the Government’s commitment to a comprehensive and vigorous defence against the claims and represents, on balance, the most cost-effective and least worst outcome for the Exchequer and the taxpayer. “The settlement terms achieved, although extremely costly, represent a substantial reduction on early estimates of €700million.”
The Irish Hospital Consultants Association described the outcome as an important and essential development to ensure the delivery of high-quality care to patients in the public health service.
President Dr Tom Ryan added: “It is now essential the discrimination against new entrant consultants is ended without delay as Ireland is no longer competitive in the global marketplace for talented doctors.”