Pat Gallagher (Donegal, Fianna Fail)
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596. To ask the Minister for Health the reason his Department through the National Treatment Purchase Fund pays a higher rate for nursing home care for some persons depending on their geographical location in view of the fact that regulations and the cost base are the same for all persons who qualify. [54304/18]

Jim Daly (Cork South West, Fine Gael)
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The National Treatment Purchase Fund (NTPF) has been designated by the Minister for Health pursuant to Section 40 of the Nursing Homes Support Scheme Act as a body authorised to negotiate with proprietors of registered nursing homes to reach agreement in relation to the maximum price(s) that will be charged for the provision of long-term residential care services to Nursing Homes Support Scheme residents. As part of this function, the NTPF enters into "Approved Nursing Home Agreements" with registered private and voluntary nursing homes to record the maximum price(s) that have been negotiated.

The NTPF take the following guidelines into account in negotiating prices; (a) costs reasonably and prudently incurred by the nursing home and evidence of value for money, (b) price(s) previously charged, (c) local market price and (d) budgetary constraints and the obligation of 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 Report of the Nursing Homes Support Scheme (NHSS) Review published in 2015 identified a number of issues for more detailed consideration, including a review of the pricing mechanism used by the NTPF, with a view to:

- Ensuring value for money and economy, with the lowest possible administrative costs for clients and the State and administrative burden for providers;

- Increasing the transparency of the pricing mechanism so that existing and potential investors can make as informed decisions as possible; and

- Ensuring that there is adequate residential capacity for those residents with more complex needs.

A Steering Group was established to oversee and manage the pricing review. The Steering Group is chaired by the NTPF and includes representatives from the Department of Health and the Department of Public Expenditure and Reform (DPER). As part of its work on the review the NTPF sought various inputs including external expertise and stakeholder engagement to inform the review. These inputs are being considered in detail.

The NTPF are now close to completing the report and aim to discuss the draft report and next steps early this year.

Once complete the report of the review will then be submitted to the Department.