Kathleen Lynch (Cork North Central, Labour)

Government policy is to support older people to live in dignity and independence in their own homes and communities for as long as possible or, where not possible, to support access to quality long-term residential care. The facility referred to by the Senators is a new, purpose-built private nursing home. It will replace another 28-bed private nursing home in the vicinity. It will also provide additional capacity in the area.

The provider of the nursing home being replaced has notified the chief inspector of the plans to conduct an orderly wind down of operations. All of its residents have chosen to transfer to the new nursing home. The new home will accommodate 60 residents and incorporate an integrated day-care service with places for a maximum of 12 residents daily from the local community. The new nursing home was registered by HIQA on 27 August.

To be an approved nursing home for the purposes of the nursing homes support scheme, a private nursing home must be registered as a designated centre with HIQA under the Health Act 2007, have agreed a price for long-term residential care for the purposes of the scheme with the NTPF and hold a valid tax clearance certificate. The agreed price criterion is necessary because of the commitment by the State to meet the full balance of the cost of care over and above a person's contribution.

The NTPF has statutory responsibility for the negotiation of prices with private nursing homes. It is independent in the performance of this function and, in carrying it out, must ensure value for money for 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 method of negotiation is necessary to ensure that the State obtains the best value for each individual in a nursing home and to comply with competition law. I understand that negotiations between the nursing home referred to by the Senators and the NTPF are ongoing.

That the business plan was based on the old rate is understandable. People could find themselves in some difficulty because they did not get the rate they assumed they would. It is a good facility that will meet standards and increase capacity. I will take the Senators' concerns to the Minister.