Dáil Éireann Debate, Tuesday - 22 March 2016
383. Deputy Seán Kyne asked the Minister for Health if he is aware of concerns arising from the increased insurance costs faced by nursing home providers, some of which have experienced substantial increases in premiums over the past two years, which is undoubtedly impacted by the limited number of insurance providers; and if he will make a statement on the matter. [5163/16]
Amharc ar fhreagraPart 6 of the Health Act 2007 (Care and Welfare of Residents in Designated Centres for Older People) Regulations 2013 stipulates that registered providers of nursing home care are required to effect a contract of insurance against injury to residents. They may also insure against other risks, such as loss or damage to a resident’s property, at their discretion. The Department of Health has no role in setting prices for insurance for private nursing homes. This is a matter between the nursing home and their insurance provider.
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.
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.
The National Treatment Purchase Fund has statutory independence in the performance of its function, and negotiates with each nursing home on an individual basis. The Department of Health has no role in such individual negotiations. The NTPF may examine the records and accounts of nursing homes as part of the process with the objective of setting a fair price which delivers value for money to the individual and the State. Pricing contracts are purely a matter for agreement between the NTPF and the nursing home in question.
When the Nursing Homes Support Scheme commenced in 2009, a commitment was made that it would be reviewed after three years. The report of the review was published in July 2015 and identifies a number of key issues for more detailed consideration across Departments and Agencies. The report recommends that the National Treatment Purchase Fund review the present pricing arrangements with a view to ensuring value, increasing transparency and ensuring adequate capacity for those with complex needs.
An Interdepartmental/Agency Working Group has been established to progress the recommendations contained in the Nursing Homes Support Scheme Review. This Group is chaired by the Department of Health and includes representatives from the Department of the Taoiseach, the Department of Public Expenditure and Reform, the HSE, the Revenue Commissioners and, when required, the National Treatment Purchase Fund. The Working Group is due to report on its progress to the Cabinet Committee on Health in June 2016.
