Billy Kelleher (Cork North Central, Fianna Fail)
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319. To ask the Minister for Health the criteria for setting prices on nursing home beds through the national treatment purchase scheme; and if he will make a statement on the matter. [37779/14]

Billy Kelleher (Cork North Central, Fianna Fail)
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320. To ask the Minister for Health the reason there is such a wide discrepancy in the nursing home support scheme prices with private and voluntary nursing homes; and if he will make a statement on the matter. [37780/14]

Kathleen Lynch (Cork North Central, Labour)
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I propose to take Questions Nos. 319 and 320 together.

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.

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 is 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.

The cost of long-term nursing home care in public nursing homes is determined by the HSE. It is acknowledged that there are variations in the cost of care between public, private and voluntary nursing homes and this is due to a range of factors, including nursing and overall staffing ratios, tenure and other conditions of employment, and the overall dependency levels and care needs of residents.

The Nursing Homes Support Scheme is currently the subject of a Review. The review is examining the overall cost of long-term residential care in public and private nursing homes and the current methods of negotiating and setting prices. It is expected that the Review will be completed in the coming months and the Report will then be made publicly available.