Andrew Doyle (Wicklow, Fine Gael)
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Question 832: To ask the Minister for Health the process under which a person will be able to receive payment for Fair Deal clients under the National Treatment Purchase Fund; the way these payments can vary between nursing homes located in the same area; and if he will make a statement on the matter. [22745/11]

Kathleen Lynch (Cork North Central, Labour)
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In response the Minister asked for a full examination of the funding situation, to be conducted jointly by the Department of Health and the HSE. The examination identified a number of factors that are putting pressure on the overall budget for 2011. These included:

· an unexpected increase in the average length of stay for nursing home patients,

· a resultant higher net demand for nursing home places, and

· an increase in nursing home costs.

The processing of approvals for financial support under the Nursing Homes Support Scheme was suspended for a month from May to June while an examination of funding was being carried out. However, the HSE has been issuing funding approvals again since the 13 June. Almost 1,700 people have been allocated funding since that date. The HSE is continuing to process applications within the funding limits available to the scheme and in accordance with the legislation. The HSE intends to deal with those currently awaiting approval within the next 6 weeks.

By the end of the year, the HSE intends that any delays in awarding funding will be eliminated. The situation will be closely monitored to ensure that funding is allocated as soon as it becomes available. It is anticipated that any delays will be resolved in the final quarter of 2011.

With regard to the variation of payments to nursing homes in the same area, the National Treatment Purchase Fund (NTPF) has statutory responsibility for the negotiation of prices with private and voluntary nursing homes. The NTPF is independent in the performance of this function and, in carrying it out, it must ensure value for money for both the individual and the State. The NTPF 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 in order to ensure that the State obtains the best value for each individual in a nursing home and to comply with competition law.