Michael Healy-Rae (Kerry South, Independent)
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Question 870: To ask the Minister for Health if he will impress upon the National Treatment Purchase Fund the need to increase the fair deal funding to sustainable levels to ensure the future viability of Valentia Community Hospital, County Kerry; and if he will make a statement on the matter. [41105/11]

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. 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 for long-term residential care beds with the National Treatment Purchase Fund (NTPF). 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.

The Nursing Homes Support Scheme only applies to long-term residential 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.

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. The HSE is continuing to engage with the Board of Management with regard to the future of services.