THREATS by Health and Social Services to take legal action against a UK insurer were dismissed as meaningless yesterday by WPA.

Communications director Charlie MacEwan said the department clearly did not understand what it was saying in trying to recover more than £300,000 from the insurer. ‘What they said is wrong, wrong, wrong. In fact, HSSD are actually threatening to sue the people of Guernsey.’

He was commenting after it emerged that the department had considered cutting WPA an exclusive discount deal, a plan later overruled by the political board by a majority.

WPA has not paid bills for Princess Elizabeth Hospital private patients since January because it claims HSSD increased charges by an unreasonable 23%.

Mr MacEwan said: ‘I am disappointed with what the Health and Social Services Department said, but on the other hand it isn’t correct and they have spun the facts wrongly. They can’t sue us for non-payment of bills. The contract for treatment of a private patient is between the hospital and the patient.

‘HSSD have taken an interesting strategy but of course we will stand by our customers and honour them – we will ask them what they want us to do. Some will say to pay the 2008 rates and to let HSSD pursue legal action against them.’

He said HSSD had approached WPA with calculations of what UK hospitals were charging in its efforts to persuade the insurer.

‘But what they came up with were way off the mark.’

In a statement yesterday, HSSD again indicated that WPA was liable for any patient debt but refused to answer questions on negotiations with WPA over a discount arrangement.

The Guernsey Press understands that despite political members rejecting any deal, a ‘quartet decision’ – minister Hunter Adam, then deputy minister Barry Brehaut and two senior civil servants – authorised two finance officials to travel to Taunton to continue negotiations with WPA over its objections to a 23% fee increase. HSSD has refused to answer questions about who paid for the trip.