Brendan Griffin (Kerry South, Fine Gael)
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616. To ask the Minister for Health if he is concerned that there seems to be inconsistency and a lack of transparency in the method of calculating a payment rate for individual nursing homes under the fair deal scheme; the broad differences of payment rates that exist for similar facilities with similar overheads in similar locations; if he will challenge the National Treatment Purchase Fund to justify its decisions; and if he will make a statement on the matter. [17693/14]

Kathleen Lynch (Cork North Central, Labour)
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The legislation underpinning the Nursing Homes Support Scheme requires each private nursing home to negotiate and agree a price for long-term residential care services with the National Treatment Purchase Fund (NTPF) should they wish to be an approved nursing home for the purposes of 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 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. 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 in order to ensure that the State obtains the best value for each individual in a nursing home and to comply with competition law.

In negotiating with nursing homes, the NTPF has regard to:

- costs reasonably and prudently incurred by the nursing home and evidence of value for money,

- price(s) previously charged,

- local market price, and

- Budgetary constraints and the obligation on the State to use available resources in the most beneficial, effective and efficient manner to improve, promote and protect the health and welfare of the public.

If price negotiations break down, a three stage review process can be invoked. Details of the process are set out on the NTPF website.

The list of approved private nursing homes and the cost of care for each of these homes is available on the HSE website at:

As the Deputy is aware, the Nursing Homes Support Scheme is currently being reviewed. One of the terms of reference for the review is an examination of the overall cost of long-term residential care in public and private nursing homes and the effectiveness of the current methods of negotiating/setting prices. Work on the review is on-going. It is expected that the review will be completed in the coming months and the report will then be made publicly available.