Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Seanad Éireann díospóireacht -
Wednesday, 3 Jul 1991

Vol. 129 No. 13

Adjournment Matter. - Subventions to Nursing Homes.

As a newly elected county councillor to the area, one of the principal problems I encountered related to nursing homes in Bray, County Wicklow. This extends as far as Greystones and probably further down the eastern coast of County Wicklow. There are at least 25 nursing homes in the Bray/Greystones area, the majority of which are situated in Bray itself. During my canvass and campaign of that area I found that the unanimous complaint from these nursing homes was about the delays in payment from the Eastern Health Board. I was rung up by one nursing home owner who complained about this and I confirmed the problem with every other owner and proprietor of a nursing home I came across in Bray. This causes extreme difficulty for nursing homes because it is impossible for the owners to plan their financial year or their future. I do not need to remind the Minister that these homes are looking after people of a very old age, many of whom are senile, some of whom have Alzheimer's disease. Many of them are incontinent and for many reasons are incapable of looking after themselves. They need constant attention and care of a very sophisticated variety.

The subvention to these patients is, I believe £39.55 per patient a week, given to them by the Eastern Health Board. The problem is that these payments are late; they are extremely late and are getting later. It is now July and has not only the June payment not been paid but, as of the day before yesterday, when I checked with some of these nursing homes, the May payment had not been made, the April payment had not been made nor had the March payment. These nursing homes are at least four months behind in their subventions from the Eastern Health Board. Even worse, when I checked today, one nursing home had received one payment and another nursing home had received two together.

I maintain that the Eastern Health Board's methods of payment are so chaotic that the very existence of these nursing homes is at risk. They do not know when they will get these subventions which are their lifeline and the basis on which they operate. I asked several nursing home owners what the situation was when they got in touch with the Eastern Health Board. They understood that the payments would be made maybe one month in arrears. They all said categorically that when they got in touch with the payment section in the Eastern Health Board they were put off. They were passed to someone else, their queries were deferred but they were never given an adequate answer either regarding the delay in payment or when they would actually get paid. They were given excuses. Some were informed that they had been told not to release cheques yet, others were told the cheques needed extra signatories, and some were given other excuses such as that it was not their responsibility. They were told anything to get them off the telephone, but they were not told when they would get the cheque to which they had a right. As a result of these appallingly erratic payments — and that is the most charitable way of putting it — the nursing homes in Bray and Greystones are working on very large overdrafts and are finding it extremely difficult to make ends meet. They have overdrafts of tens of thousands of pounds which result in very small profit margins, if they make any profit at all at this stage. It is unreasonable that the Government, through the Eastern Health Board, should be putting those involved in a very necessary and relatively unprofitable venture under this sort of pressure. Playing about with the patients' health should not be permitted by a Government or by the Eastern Health Board.

Another complaint I have heard but have not confirmed — maybe the Minister will be able to confirm or deny it — is that the Eastern Health Board pays smaller subventions to nursing homes than any of the other health boards. The rest of the country gets £7.02 per patient per day while the Eastern Health Board only pays out £5.65. Many of the nursing homes paid by the Eastern Health Board get assurances in writing every July that they will receive increases but they never materialise. As a result it is impossible once again for the nursing homes to plan. There is a breach of promise by the Government to those involved in a very vital health service. The Minister should realise this, even though the objective of most nursing homes is to make a profit and their proprietors who have wide experience in the nursing world also want to make a profit.

If the Government, through the Eastern Health Board, deny the nursing homes the possibility of making a profit, then the nursing homes will have to close. As a result the Government will inevitably have to take on that responsibility, will have to set up State nursing homes and will have to take on the responsibility for these geriatric patients, many of whom are totally incapable of looking after themselves. That is the doomsday picture but it may be the reality in Bray or Greystones if these people are not given assurances about the time and the amounts they will be paid. I would like the Minister to give me firm pledges, which will be kept, about these payments and tell me what the timelag will be.

At the moment the proprietors are living in wonderland waiting for their cheques. They are ringing the Eastern Health Board three, four or five times because the payments are three and sometimes five months overdue. The inevitable result of this will be that the patients' health will suffer, the banks to whom these nursing homes are in debt will sooner or later say they can go no further. I have seen the overdrafts some of these people are running on and I do not understand why banks have given them these overdrafts. They are given on the basis that there is a cheque coming from the Eastern Health Board. It is an impossible way to run a business and it is utterly wrong that any health board should pay out so erratically and so sporadically. I would like the Minister to tell me that in future these payments will be paid on time, and will be paid regularly.

An Leas-Chathaoirleach

Before the Minister replies, I would like to apologise to the House for missing the last vote. I was to be contacted but, unfortunately, I was across the road and I did not get the message.

First, I would like to congratulate Senator Ross on his election to Wicklow County Council and hope he enjoys his time there.

In regards of the issue before us, there are three kinds of accommodation for the elderly: there are the State run institutions, the private nursing homes and the voluntary nursing homes which are non profit-making. The Health (Homes for Incapacitated Persons) Act, 1964, and the Homes for Incapacitated Persons Regulations, 1985, govern the operation of private nursing homes at present. Subventions may be paid to dependent persons in approved nursing homes under section 54 of the Health Act, 1970. Health boards may also utilise section 26 of the 1970 Act to pay subventions to dependent persons in nursing homes that operate in compliance with the 1964 Act and the 1985 Regulations on a means tested basis.

The Senator referred to the difference between the Eastern Health Board and other health boards. I am unaware that the Eastern Health Board pay less than the other health boards by way of subvention, but unlike the other health boards the Eastern Health Board use the latter section I referred to, section 26 of the 1970, to pay subventions whereas the other health boards have always used section 54 of the 1970 Act which gives the right to recognise nursing homes. No nursing home has been recognised under that section of the Act, however, since 1981.

I would also draw the Senator's attention to the Health (Nursing Home) Act, 1990, which I introduced in the Dáil and Seanad last year. That Act will place a statutory duty on health boards to register nursing homes. The boards will also be enabled to subvent a person in need of care in a registered nursing home following an assessment of the person's dependency and their means and circumstances. Something that is new is that the health boards will be able to subvent a person in a nursing home and there will not be a restriction on the amount. It will take into account the means of the person and also the degree of dependency. In other words, the health board will be able to subvent a person who is incapacitated to a greater extent. For example a person with Alzheimer's disease would be seen as very dependent and the higher subvention could be paid by the health board in those circumstances. At present we are drafting regulations to give effect to the provisions of the Act and it is hoped to implement that Act later this year. Section 54 of the Health Act will be repealed.

In addition to present expenditure by health boards on nursing home subventions, a further £0.5 million has been provided this year to implement the new legislation. I would also refer the Senator to the Programme for Economic and Social Progress which includes a commitment to provide adequate numbers of extended chair beds for the elderly, especially in those board areas experiencing a rapid increase in their elderly population. As the Senator is aware, there was a special allocation of £5 million in 1990. That was repeated in this year's estimate and a further £3 million was added in the budget to improve the services for the elderly. The health boards receive a pro rata share of the money provided in 1990 and again this year, depending on the number of elderly in their area.

The Eastern Health Board pays £3.1 million per annum to nursing homes within the board's functional area in respect of the cost of subventions and contract beds. In recent years there has been a significant increase in the demand for subvention from dependent persons in nursing homes, and in order to meet this increased demand it has been necessary for the board to structure the release of cheque payments in line with the cash and overdraft facilities available. In this regard it is the policy of the board to try to maintain a payment period of not more than two months for nursing home accounts. The board maintains regular contact with the nursing homes in its area and arrangements are in place to deal with any particular cases or difficulty which arise from this policy.

I might point out that it is not a matter for me or my Department, it is for individual health boards when they pay their creditors. I will bring the points raised by the Senator here this evening to the attention of the health boards.

I would like to thank the Minister for his reply.

The Seanad adjourned at 10.15 p.m. until 10.30 a.m. on Thursday, 4 July 1991.

Barr
Roinn