Dáil Éireann Debate, Monday - 11 September 2023
2019. Deputy Brendan Smith asked the Minister for Health if he proposes to introduce additional financial support for private nursing home providers, in view of increased costs over recent years and the financial challenges facing some providers; and if he will make a statement on the matter. [39427/23]
Amharc ar fhreagraBudget 2023 saw over €40 million in additional funding for Fair Deal which is providing for an uplift in the maximum prices chargeable by private and voluntary nursing homes, as negotiated. Overall, nearly €1.5 billion of the total Health Budget for 2023 is allocated to support people under the Nursing Home Support Scheme (Fair Deal). The Government has also seen the provision of free PPE and oxygen to private nursing homes continues, as of May 2023, this has cost approximately €77 million. I recently held a roundtable discussion with private nursing home provider representative groups where the issue of continued support for the sector was on the agenda and I will continue to engage with them going forward. Discussions on next year’s Estimates and Budget 2024 are ongoing and a wide range of initiatives are under consideration. It should also be noted that the Department of Health and I have regular interaction with the National Treatment Purchase Fund (NTPF) and have met them to discuss ways to support the sector, where necessary and appropriate, to complement the normal process of negotiating rate increases when contracts are renewed. Any nursing home which has had a scheduled renegotiation of their Deed of Agreement with the NTPF this year has seen a significant uplift. These new contracts have seen an average baseline increase in price per bed of between 6% and 7%. The Government is also cognisant of private and voluntary nursing homes that are not scheduled to renegotiate their Deed of Agreement in 2023.
A significant change that the NTPF have made to their negotiation process is for nursing home providers to agree to a shorter contract duration, which will aim to ensure that NTPF rate increases stay aligned with any cost pressure increases that occur over the course of the contracted period.
The NTPF are the body designated, under Section 40 of the Nursing Homes Support Scheme Act 2009, to negotiate with persons carrying on the business of a nursing home, for the purposes of reaching an agreement on the maximum prices to be charged for nursing home care. There is no role for Ministers in the negotiation process which is conducted and agreed between individual nursing home providers and the NTPF. There is no other mechanism for funding from the public purse for nursing home residents outside the Nursing Home Support Scheme. It is imperative that private and voluntary providers continue to engage in the process as set out in the Nursing Homes Support Scheme Act 2009. A short-term extension to the Temporary Inflation Payment Scheme (TIPS), introduced last year to help with increased energy costs due to inflation, is currently under review.
