On 24 March 1924 he was appointed Bishop of Clonfert. After his Episcopal ordination in June 1924 he gave an interview in which he declared himself a 'Republican' and that he hoped to see a 'reversion to the pre-Treaty days of Ireland'. He was the first Irish bishop to speak against the Treaty and articulate a pro-Sinn Fein perspective.
Thomas Gilmartin,
Archbishop of Tuam is said to have remarked, "...after that I am finished consecrating bishops." Gilmartin had counseled his priests that whatever their personal political beliefs, they should not take an aggressive part on behalf of either side. In 1933 Dignan published a pamphlet,
Catholics and Trinity College. He also had to content with the radical priest
John Fahy. Dignan was appointed chair of the Committee of Management of the National Health Insurance Society in 1936 by
Seán T. O'Kelly and would feature prominently in the development of government policy in this area for much of the next decade. It has been suggested that he "campaigned relentlessly" for the introduction of state medical benefits including in personal meetings with
Éamon de Valera and finally saw this being legislated for in 1942. In 1944 he published
Social Security: outlines of a scheme of national health insurance hailed at the time as Ireland's
Beveridge plan and which ignited a debate about wider social welfare provision in the recently independent Ireland. It took discussion of social policy in twentieth century Ireland out of nineteenth century ideological notions such as 'poor law provision.' ==References==