Tom Fleming (Kerry South, Independent)
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Question 618: To ask the Minister for Health if he will secure the future of a hospital (details supplied) in County Kerry as a provider of long-stay care by reclassifying the hospital similar to public providers thus ensuring an increased level of State funding per bed which will make the service sustainable into the future. [35770/11]

Kathleen Lynch (Cork North Central, Labour)
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Valentia Community Hospital is run by a voluntary organisation, Valentia Community Health and Welfare Association Ltd, and has a service level agreement with the HSE under Section 39 of the Health Act 2004. All organisations with Service Level Agreements under this section of the Health Act 2004 are required to negotiate with the National Treatment Purchase Fund as they provide services in addition to, not on behalf of, the HSE, and are therefore not legally regarded as public services.

In the past, Valentia Community Hospital would have been allocated a lump sum annually by the HSE. However, the introduction of the Nursing Homes Support Scheme in October 2009 brought about a fundamental statutory change in the way in which long-term nursing home care is funded and, consequently, the way in which nursing homes and community hospitals are funded. The principle is that funding follows the patients. The new scheme supports the individuals in need of long-term nursing home care, not the facilities providing the care, and it is designed to ensure that nursing homes are not being funded for empty beds.

In order to qualify for the scheme, all private nursing homes and voluntary nursing homes which previously received funding for long-term residential care under section 39 of the Health Act 2004, including Valentia Community Hospital, must negotiate and agree a price for the cost of care with the National Treatment Purchase Fund. 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 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.

As stated above, the Nursing Homes Support Scheme only applies to long-term nursing home care. Valentia Community Hospital can continue to have separate agreements with the HSE for the provision of other services, e.g. day care, respite and convalescence.

In conclusion, it is not possible to re-classify Valentia Community Hospital as a public provider. There have been ongoing discussions between the Board of Management of Valentia Community Health and Welfare Association Ltd. and the HSE with regards to future service provision. In addition, the Minister for Health met with a delegation from Valentia Hospital in June. I understand that, following the meeting, the HSE is continuing to engage with the Board of Management with regard to the future of services.