Review of Pricing System for Long Term Residential Care Facilities

The Nursing Homes Support Scheme (NHSS), commonly referred to as Fair Deal, has been in place since 2009 as a system of financial support for people who require long-term residential care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost. In this way, for a decade, the scheme has ensured that long-term residential care is accessible and affordable for everyone who needs it and that people are cared for in the most appropriate settings.

Approximately 80% of nursing home places funded under the NHSS are in private or voluntary nursing homes that are funded by the State based on prices negotiated with the National Treatment Purchase Fund (NTPF). The maximum prices chargeable by private nursing homes for residents funded under the NHSS are agreed between each nursing home and the NTPF, which has a legally designated function to negotiate with nursing homes under the Nursing Homes Support Scheme Act 2009. The NTPF has statutory independence in this regard, agreeing rates with each nursing home according to a consistent set of criteria.

The Review of the Nursing Homes Support Scheme, A Fair Deal highlighted the need to re-examine the pricing mechanism used by the NTPF in relation to the NHSS. The Minister for Health subsequently requested that the NTPF carry out a review of the pricing system. A steering group was established with representation from various departments and agencies and expert advice and stakeholder submissions were sought.

The review is attached below, with redactions in order to protect commercial sensitivities and the interests of the public.

Further information regarding the role of the NTPF in the NHSS is available at the following link: https://www.ntpf.ie/home/nhss.htm.