Dan Neville (Limerick, Fine Gael)
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Question 140: To ask the Minister for Health if he will ensure that the National Treatment Purchase Fund will review the allowable rate granted to a nursing home (details supplied); and if he will make a statement on the matter. [26465/11]

Kathleen Lynch (Cork North Central, Labour)
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The legislation underpinning the Nursing Homes Support Scheme requires all private nursing homes and Voluntary Nursing Homes which previously received funding under Section 39 of the Health Act 2004 to negotiate and agree a price for the cost of care with the National Treatment Purchase Fund (NTPF) should they wish to participate in the scheme. This is a necessary feature of the scheme due to the commitment by the State to meet the full balance of the cost of care over and above a person's contribution.

The National Treatment Purchase Fund (NTPF) has statutory responsibility for the negotiation of prices with private and voluntary nursing homes. e 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. e cost of care in each nursing home is not determined by virtue of a nursing homes geographical location. e NTPF negotiates with each nursing home individually and may examine the records and accounts of nursing homes as part of the process. is 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.

Finally, the Minister for Health issued an instruction to the NTPF in June to renegotiate with nursing homes with a view to achieving price decreases because the increases agreed over the last number of months are not sustainable.