Dáil Éireann debate -
Tuesday, 30 Jan 2001

Vol. 529 No. 1

Written Answers. - Nursing Home Subventions.

John Bruton

Question:

526 Mr. J. Bruton asked the Minister for Health and Children if there are plans to increase the subvention paid to residents of nursing homes; his views on whether a review of the system is urgently required given that it was last reviewed in 1993; and if he will make a statement on the matter. [1027/01]

Paul Connaughton

Question:

615 Mr. Connaughton asked the Minister for Health and Children if his attention has been drawn to financial difficulties many people who are in private nursing homes have at the moment trying to pay their bills in view of the huge increase in nursing home charges, particularly over the past six months; and if he will make a statement on the matter. [1445/01]

Seán Haughey

Question:

732 Mr. Haughey asked the Minister for Health and Children when nursing home subvention rates will be increased following the Budget Statement and if he will make a statement on the matter. [2361/01]

Minister of State at the Department of Health and Children (Dr. Moffatt)

I propose to take Questions Nos. 526, 615 and 732 together.

Under the Health (Nursing Homes) Act, 1990, health boards provide subventions to assist persons in meeting the costs of nursing home care. However, it was never intended that subventions would meet the full costs involved. The placement of a person in a private nursing home and the fees charged is a private arrangement between the nursing home and the individual resident. Accordingly, my Department has no function in relation to the setting of private nursing home fees.

There are three rates of subvention payable (£70, £95 and £120) in accordance with three levels of dependency (medium, high and maximum). The amount of funding allocated to supporting people in private nursing homes has been significantly increased by this Government in recent years, from £23.8 million in 1998 to £33.1 million in 1999 to £38.5 million in 2000. A further £14 million is being provided in 2001, bringing the total funding available to £52.5 million. As I advised the House in my response to a parliamentary question of 7 December last, it is the intention to increase the rate of subvention in respect of private nursing homes by 25% with effect from 1 April 2001. The new rates will be £90, £120 and £150.

On the question of an overall review of the scheme, I should explain that an expenditure review of the nursing home subvention scheme is currently being undertaken by my Department in association with the Department of Finance. The findings of this review, which is expected to be completed shortly, will be examined in the Department for the purposes of determining what action requires to be taken in relation to the future operation of this scheme.