BUPA closing in Fermoy

[Dodge]

Bupa closing 300 office jobs doesn't not kill Fermoy. Its not as these specialist jobs that no other company works at. All means that people may have to travel further to find work.

Or cleaning loos, eh Pete?

Glad I'm not with BUPA. Ridiculous carry on by them.

[rebs23]

Its more ridicolous for the Irish Government to change the ground rules on risk equalisation in 2003, nearly 10 years after BUPA entered the market.

Its more ridicolous that nearly 300 people are out of a job(potentially) after a government decision to protect a semi state competitor in such an unfair manner. I don't think anyone is against risk equalisation, its the manner and amount are the issue.

Its a bit ridicolous the threats from BUPA and I have a feeling they won't pull out but still.................

[pete]

Or cleaning loos, eh Pete?

All i am saying is its reported as if a massive blow to rural town when realistically Fermoy is a commuter town to Cotk City like say Naas or Drogheda to Dublin. Obviously theres uncertainty for people just before christmas but I would guess Bupa will exist for at least another 6 months so staff will have choice to looking for work now or waiting for redendency - i would imagine Bupa being large international company they will give good packages over the statutory requirement.

BTW Bupa operate in community rated market in the UK too so its not as if they protesting about that.

Whoevers fault you think it is still means very bad day for the consumer - VHI will now be a public monopoly with virtaully no competition so expect bigger increases in the years to come.

[Macy]

VHI will now be a public monopoly with virtaully no competition so expect bigger increases in the years to come.

All recent increases have been due to budget decisions on the cost of hospital beds - there's more due since the last budget. The Governments latest plan is that VHI will have to build it's reserve to commercial levels, which will lead to further increases out of the VHI's hands.

btw, If competition was so great in the market why did it allow Bupa to build up such large profits? BUPA wasn't some great White night championing the consumer. It was raking in the profits in this country. It's decision to pull out in a sulk is exactly why the consumer needs the protection of a state body in the health insurance market - we know the VHI isn't going to spit the dummy and just walk away from it's customers.

[pete]

btw, If competition was so great in the market why did it allow Bupa to build up such large profits?.

Its been mentioned they would have 61m profits over 3 years.I don't think i'd call 20m or so a year large profit.

They said they had 475k members so i suppose 600-700 euro a year would be reasonable estimate per person? Leaves with 300m or so turnover. Looking at 6.66% profit before risk equalisation. I think i read they earn 4-5% profit in the UK so Ireland small fry compared to worldwide interests.

I've no idea if Bupa good bad or indifferent but at least they kept VHI on their toes. I think you will see Vivas pull out in the next few years when they get risk equalidation bill too. I don't know what the solution but VHI as incumbant had many advantages to balance against the fact they have older customers. VHI have just as many company schemes & nothing stopping them targetting younger customers too.

I;ve nothing against a well run public health system but I don't see that happening anytime soon. Given the system we have VHI with 90% market share can't be good.

[Macy]

Well personally I think we're just too small a market. Every privatisation and deregulation of domestic markets has lead to massive cost increases to consumers rather than reductions, and a big fall off in service levels. That is even before you take into account the building up of profitability before privatisation to make them attractive. Deregulation is a failed policy in Ireland for the only people that matter - the consumer.

[drummerboy]

Looks like BUPA are starting to row back on their decision. They are making all the sound bites of someone who wants to re-negotiate their position. This was more or less admitted by McDowell on TV last night.

[Clifford]

Looks like BUPA are starting to row back on their decision. They are making all the sound bites of someone who wants to re-negotiate their position. This was more or less admitted by McDowell on TV last night.

Looks like the Government are starting to row back on their decision. They are making all the sound bites of someone who wants to re-negotiate their position. This was more or less admitted by McDowell on TV last night.

[dahamsta]

Who could possibly know that a corporation would resort to scumbag tactics as negotiating measures? It's unprecedented!

[Student Mullet]

Well personally I think we're just too small a market. Every privatisation and deregulation of domestic markets has lead to massive cost increases to consumers rather than reductions, and a big fall off in service levels. That is even before you take into account the building up of profitability before privatisation to make them attractive. Deregulation is a failed policy in Ireland for the only people that matter - the consumer.

I dinno, I got a fairly cheap ryanair flight to San Marino.

Quick..........to the socialism thread.

[Macy]

I suppose if you're happy with the outstanding customer service levels of Ryanair, however, I did say domestic markets.

[pete]

I suppose if you're happy with the outstanding customer service levels of Ryanair, however, I did say domestic markets.

25 euro return dublin-cork, never late, never any problems. Its a bus that flys. If we were still relying on Aer Lingus would cost 200 euro & go via Shannon.

Taxi deregulation has been a good thing. Limited bus regulation on some routes adds more options to consumers.

[Student Mullet]

I suppose if you're happy with the outstanding customer service levels of Ryanair,

Their levels of service are similar to the publicly run dublin bus and the flight was cheaper than the 1.55 I pay to get into town. Overall I'm quite happy.

[rebs23]

Suprise Suprise;-

http://www.rte.ie/business/2006/1220/bupa.html

[dahamsta]

The words "toys" and "pram" keep getting stronger and stronger in my head.

I'd prefer if they'd go tbh. It's greedy pr*cks like this give corporations a bad name; not happy with a profit, they have to virtually rape their customers before they're happy. The less of it we have in Ireland, the better.

adam

[pete]

The words "toys" and "pram" keep getting stronger and stronger in my head.
I'd prefer if they'd go tbh. It's greedy pr*cks like this give corporations a bad name; not happy with a profit, they have to virtually rape their customers before they're happy. The less of it we have in Ireland, the better.

Bizarre decision alright.

They are making approx 6% profit before risk equalisation so hardly fleasing the consumer. Its nearsighted to suggest consumer loses because they make profits.

Its a bit like the Ryanair scenario, even if you not a customer you are probably paying less with VHI because Bupa exist. Ryanair makes vast profits yet the consumer pays less for all flights now on all airlines. e.g. been travelling to Oslo a few times recently for work mainly with SAS (nice service but can be very expensive). Ryanair now fly direct from Dublin. I'll be off again in January - compared flight prices: Ryanair direct 50 euro, SAS economy 250 euro indirect.

[Mr A]

BUPA...the Dundalk of the Eircom Helathcare league

I'm just waiting for a BUPA member to enter the department of health with a can of petrol.

Despite being a BUPA member I've no sympathy at all for them. They wanted everything their own way and ignored the fact that risk equalization was always part of the deal. Seems to me they came here to make a fast buck and hoped to bully the government into letting it continue.

Balls to them.

[dahamsta]

I don't have a problem with profits pete, I make them myself. I have a problem with greed. 6% profit is not to be sneezed at in a market of that scale.

adam

[pete]

I don't have a problem with profits pete, I make them myself. I have a problem with greed. 6% profit is not to be sneezed at in a market of that scale.

adam

6% profits is not high. Risk equalisation would remove that profit. Maybe Bupa have too much staff & admin costs too high but it cannot be good that VHI have 90% of the market?

[dahamsta]

As I said, 6% is not low for a market of that scale. And I'm sorry, but I don't believe that risk equalisation would 'remove' that profit. We have a government full of incompetents and chancers, but they're not stupid enough to propose a system that would expect a business to run at a loss; particularly not this government, with their gung-ho 'pro-business' partners in crime. No, it wouldn't be good for VHI to have 90% of the market, but it's not good to have a portion of the market operated by a company that puts profits above all else either. They've already proved that they're willing and able to use deception and bullying as tactics. Six of one...

adam