Average €1,025 more payable on behalf of HSE residents in Kilkenny under Fair Deal

New HSE figures reveal the gap in the funding of the State's nursing homes under the Fair Deal scheme is escalating, amidst the cost of care crisis that has led to an unprecedented level of closure of private and voluntary nursing homes.

Recently published figures reveal HSE nursing homes receive an average 69% more (€744), per resident, per week, under Fair Deal fees payable by comparison with private and voluntary counterparts. 

In Kilkenny, the average fee payable on behalf of an individual nursing home resident in a HSE nursing home is now €1,025 above that payable to counterparts in private and voluntary nursing homes. In January 2022, the disparity was €812. The published fees, for January 2023, inform across every county over the past year, the disparity under the scheme has increased. In three counties – Laois, Longford and Westmeath, HSE nursing home fees for resident care are double those payable to private and voluntary counterparts. 

“While the funding crisis has led to the closure of over 20 nursing homes the past year, the already considerable gulf in payments to HSE nursing homes has increased," says Tadhg Daly, NHI CEO.

"HSE nursing homes now, on average, are receiving close to an average €800 extra funding per resident, per week, for nursing home care. In January 2022, the average difference was over €600 per resident and it is now approaching €800. Fees payable to HSE nursing homes signify the reality of nursing home care costs.

"There are multiple analyses of Fair Deal finding the fee setting process, which is not applicable to State nursing homes, is not commensurate with the reality of nursing home resident care costs. HSE nursing homes are provided with fees that are commensurate with resident care costs. The chasm in how the State funds its own nursing homes represents discrimination against nursing home residents and those entrusted in meeting their health and social care needs. It is discriminatory use of public funding and private and voluntary nursing homes are forced to close while HSE nursing homes receive multiples in funding.” 

A Value for Money Review commissioned by the Department of Health pointed to what it says is the discrimination in fees payable prohibiting the capacity of private and voluntary nursing homes to compete with HSE nursing homes in remuneration for healthcare assistant staff," Mr Daly said.

“The discrimination being operated under Fair Deal has a direct effect upon the ability of nursing homes to appropriately remunerate and retain staff who are vital to meeting our older population’s health and social care needs. The prejudicial process discriminates against staff in private and voluntary nursing homes. A Fair Deal that is fair to all providers should be underpinned by the principle of equal pay for equal work.”   

NHI has called on Government to expedite its continually stated commitment to implement measures to bring stability to the sector, which was recently reiterated within its Sláintecare progress report.