Richard Bruton (Dublin Bay North, Fine Gael)
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1420. To ask the Minister for Health if the indexation-up of outstanding amounts under the fair deal scheme is being reviewed in view of the fact that the rate of inflation is now far in excess of interest rates and the cost to the State of funding the outstanding amounts; and if he will make a statement on the matter. [1181/23]

Mary Butler (Waterford, Fianna Fail)
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Funding to support people to access services in the nursing home sector continues to be provided in line with the long-established statutory mechanisms under the Nursing Homes Support Scheme Act 2009. This is the mechanism established by the Oireachtas to provide for the processes relating to funding under the Nursing Homes Support Scheme (NHSS) and the negotiation of prices for services for private and voluntary providers with the designated State agency, the National Treatment Purchase Fund (NTPF). Maximum prices for individual nursing homes are agreed with the NTPF following negotiations and based on the NTPF’s cost criteria. These criteria include costs reasonably incurred by the nursing home, local market prices, historic prices and overall budgetary capacity. 

The NTPF carry out this role independently under the NHSS Act 2009. The NTPF has statutory independence, and there is no role for Ministers or the Department of Health in these negotiations. The Department of Health published a review of the NTPF pricing system in June 2021. 

The cost of residential care to the State was approximately €1.4 billion in 2022, including contributions from residents. Budget 2023 saw over €40 million in additional funding for the NHSS which will provide for an uplift in the maximum prices chargeable by private and voluntary nursing homes, as negotiated.

The Government remains conscious of the financial challenges faced by the Nursing Home sector, particularly in terms of inflationary cost increases. I encourage all eligible providers to avail of the €10m Temporary Inflation Payment Scheme (TIPS) which covers up to 75% of year-on-year energy and heating cost increases in private and voluntary nursing homes up to a monthly cap of €5,250 per month per nursing home over the period of July to December 2022 (up to €31,500 per nursing home for 2022).

Since the start of the pandemic, private and voluntary nursing homes have received a wide range of non-financial supports, including over €72m in free PPE and oxygen, as well as over €145m of financial support through the Temporary Assistance Payment Scheme (TAPS). The TAPS COVID-19 Outbreak Assistance was also extended to the end of 2022.

The Department of Health is currently considering extension of the Temporary Assistance Payment Scheme (TAPS) COVID-19 Outbreak Assistance to the end of March 2023 and extension of the timeframe of the Temporary Inflation Payment Scheme (TIPS). Any further extension or expansion of either scheme will be kept under review.

I am currently in discussions with Departmental officials to examine ways in which funding can also continue to be used to provide support, where necessary and appropriate, to those nursing homes who are not scheduled to renegotiate their Deeds of Agreement this year. Other options to support nursing homes are also being explored.