THE chairman of the Dail public accounts committee (PAC) is to call in senior Department of Health executives and the Medical Defence Union (MDU) to examine the taxpayers’ potential exposure to insurance claims.

The dispute between Micheal Martin, the health minister, and the company that was once the largest insurer of hospital doctors in Ireland has raised fears that the exchequer could be exposed to an €800m bill for medical negligence.

The MDU last month indicated that it would not be covering claims lodged against 11 consultants as the company’s dispute with the government took a turn for the worse.

John Perry, the PAC chairman, said he was dismayed that obstetricians and their patients could be left unprotected as a result of the MDU’s decision to refuse indemnity.

He said it was “of serious concern” that the state may have to pay for or refund doctors’ subscriptions to the MDU, although it appeared the insurance cover paid for by those subscriptions was “not equivalent to contracts of insurance”.

The Department of Health paid out €35m last year in subsidising 80% of the medical insurance costs for 1,600 hospital consultants. The vast bulk of that spending would have gone to meet the needs of obstetricians, neurosurgeons and orthopaedic surgeons — the disciplines with highest litigation rates.

Perry is expected to call in Michael Kelly, the department’s secretary-general, as well as senior MDU personnel.

“Taxpayers would be concerned if they were faced with huge liabilities as a result of these arrangements,” said Perry. “There are serious questions to be asked as to why the department refunded subscriptions in relation to doctors’ medical malpractice indemnity, and we only find out now this indemnity was offered on a discretionary basis.”

A Department of Health spokeswoman said indemnity had never been refused before last month and the insurance offered was standard in international healthcare.

The MDU has told government that it is aware of about €120m in “known claims” or likely claims, and has proposed paying €85m-€100m to government to discharge its obligations towards these claims.

However, the government fears that the potential exposure to obstetrics lawsuits — stemming from births before 2004 — could be as high €800m over the next 20 years.

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