62% gap in public vs private nursing home fee
AVERAGE charges for residents of public nursing homes were 62% higher than private alternatives, a watchdog has found.
A difference amounting to over €500 a week in 2018 was attributed to better pay and conditions and higher staff-to-resident ratios, the HSE said.
Rates for public nursing homes were based on prior-period operating costs and bed occupancy levels, whereas those for private nursing homes were agreed by negotiation.
Comptroller and Auditor General Seamus McCarthy published a report which said: ‘Over the period 2010 to 2018, the average weekly charge rate in public nursing homes was consistently higher than the average weekly charge rate for private and voluntary nursing homes.’
The examination found between 2010 and 2018 the average weekly fee for public nursing homes increased by 26% to €1,564 while the increase for private and voluntary over the same period was less than half, at 11%, bringing them to €968.
Tadhg Daly, of Nursing Homes Ireland described the report as ‘damning’ yesterday. He said: ‘Very serious questions arise from this examination
‘The State is not subject to effective scrutiny’
regarding State utilisation of the €1billion Fair Deal budget, with it presenting a 62% differential in fees payable between State-operated nursing homes and private counterparts.
‘The State is not subject to effective scrutiny and is hiking the fees payable to its nursing homes while residents in private nursing homes are inherently discriminated against.
‘For many years, NHI has highlighted the gross inequality in the application of Fair Deal funding. This report confirms such.’
Fair Deal was established in 2009 to provide financial support to residents towards the cost of care and is administered by the HSE.
Budgets were allocated to public nursing homes based on the calculated weekly charge rate.
The HSE has attributed the difference to better pay and conditions for staff in public nursing homes, including the implementation of national pay awards. It also pointed to the higher proportion of maximum dependency residents and greater costs associated with older buildings used as nursing homes.
The audit office said: ‘Some public nursing homes located in rural or isolated areas may not be commercially viable. However, the HSE has not undertaken formal analysis of these cost drivers.’