The legislation underpinning the Nursing Homes Support Scheme requires each private nursing home to negotiate and agree a price for long-term residential care services with the National Treatment Purchase Fund (NTPF) should they wish to be an approved nursing home for the purposes of the Scheme.
The NTPF is independent in the performance of this function and, in carrying it out, must ensure value for money for both the individual and the State. It negotiates with each nursing home individually and may examine the records and accounts of nursing homes as part of the process. This is to ensure that the State obtains the best value for each individual in a nursing home and to comply with competition law.
In negotiating with nursing homes, the NTPF has regard to:
- costs reasonably and prudently incurred by the nursing home and evidence of value for money,
- price(s) previously charged,
- local market price, and
- budgetary constraints and the obligation on the State to use available resources in the most beneficial, effective and efficient manner to improve, promote and protect the health and welfare of the public.
If negotiations between nursing home proprietors and the NTPF cannot reach agreement there is a three stage review process available.