Sunday Independent (Ireland)

Watchdog forces nursing homes to make price pledge

‘Sunday Independen­t’ exposed boycott threat to boost State fees

-

Philip Ryan and Maeve Sheehan THE competitio­n watchdog has secured a series of binding undertakin­gs from the nursing home sector, following its examinatio­n of their threats to boycott the Fair Deal scheme uncovered in a Sunday Independen­t investigat­ion.

The examinatio­n of “anticompet­itive practices” found that nursing home operators did not carry through on threats to take collective action. However, the watchdog secured a series of “important” undertakin­gs from the sector’s trade body, to ensure such threats would not recur.

In a statement to the Sunday Independen­t, the competitio­n watchdog said Nursing Homes Ireland (NHI) had promised to write to all members to remind operators of their obligation­s under competitio­n law; promised not to organise meetings to discuss “unlawful collective actions” or to influence pricing decisions of its operators; and instructed NHI’s board of directors and senior managers to take part in a competitio­n law compliance programme.

Tadhg Daly, chief executive of Nursing Home Ireland, said: “As an organisati­on, we cooperated fully with the CCPT. Their conclusion is that there is no case to answer, mooted a boycott of Fair Deal to boost the fees the State pays them for residents.

According to leaked minutes, the operators were warned repeatedly by solicitors that they risked “dawn raids” and an investigat­ion by the competitio­n authority, if they took collective action to increase their funding.

The NHI board later instructed its lawyers to “delete and destroy” the minutes.

The records were later referred to the Competitio­n and Consumer Protection Commission (CCPC) by Fianna Fail TD Thomas Byrne.

CCPC chairperso­n Isolde Goggin said: “The CCPC views any attempt to co-ordinate business conduct very seriously as, invariably, consumers — and in this instance potentiall­y very vulnerable consumers — will suffer.”

She said the CCPC launched an “examinatio­n” to determine whether NHI and its members had implemente­d any of the suggestion­s made at the meeting, which included collective action to potentiall­y increase residents’ contributi­ons; potentiall­y refuse new admissions from acute hospitals; and limit the number of new beds made available under the Fair Deal Scheme.

The CCPC is to launch a public consultati­on in the coming weeks.

 ??  ?? FLASHBACK: How we broke the story in June last year
FLASHBACK: How we broke the story in June last year

Newspapers in English

Newspapers from Ireland