CORK’S nursing-home sector faces its toughest times in living memory, with operators calling for changes to the Fair Deal funding system.

Last week Beaumont Residential Care nursing home, which provides care services for 73 residents, said it has "been forced by the actions and inactions of the NTPF to leave the Fair Deal scheme" with effect from May 30. The home will remain open but will no longer be able to remain in the Fair Deal scheme.

Speaking about the decision, Stuart Murphy, CEO of CareChoice Group, which owns Beaumont Residential Care, said “Beaumont Residential Care is deeply aware of the profound impact of this decision on the residents and their loved ones, who because of the approach of the National Treatment Purchase Fund (NTPF) are no longer covered by the Fair Deal scheme. 

"The decision to withdraw from the scheme is extremely regrettable and has been taken as a last resort.

The reality is that Beaumont Residential Care, in common with many of our homes, is under extreme financial pressure because of the shortfall between the funding delivered by the NTPF and the actual cost of caring for our residents – a gap which has widened considerably because of the cost of living increases across the Irish economy.

"“The situation has become unsustainable and leaves CareChoice with no choice but to opt out of the Fair Deal scheme for this nursing home. 

"The timing of this decision has been determined by the fact that its rates have been up for renewal with NTPF, but they are refusing to deliver vital cost of living increases for our residents." 

Energy and labour cost hikes and stringent HIQA standards are squeezing small nursing homes but it is the Fair Deal funding system which most needs reform, says one of Cork’s largest nursing-home operators.

Tom Finn, founder of Silver Stream Healthcare and owner of Ballincurrig Care Centre near Midleton and Riverstick Care Centre, said Fair Deal served its purpose well when introduced but has not evolved to reflect the costs and complexity of modern long-term care. “It is not fit for purpose,” he said.

“In reality, Fair Deal was a blanket approach to long-term care at the time,” said Mr Finn.

 “In most jurisdictions, they pay for care that is needed, and as people’s care becomes more complex, they cost more, and they pay more for that. No different from if you were in a medical ward, and it’s €800 per night, as opposed to if you’re in an ICU and it’s €5,000 per night.”

The HSE’s success in helping people live at home longer means they are coming into nursing homes much sicker and requiring greater care later in life, he added. When Fair Deal was introduced, the average length of stay in a nursing home was four years.

“Now it is barely over one year,” said Mr Finn. “They are being paid for by a system that is 12 or 13 years old for a completely different profile of residence.”

Mr Finn sees a spate of nursing homes closing in the near future: “There are over 30 nursing homes after closing; another one or two to be announced soon.”

COSTS

Labour inflation and the rising cost of food, up 20% over the last year, combined with high energy costs, are crippling family-run care homes.

HIQA inspects nursing homes and its reports can add thousands in costs.

“They could walk out the door, generating a bill for the provider of up to €250,000. Fair Deal doesn’t support that level of investment,” said Mr Finn.

“Ultimately, it’s going to result in homes closing.”

When a home closes, it puts huge pressures on families. In Fermoy, where a home closed recently, families were left scrambling to find a place for loved ones.

“It’s an incredibly stressful time for families and residents,” he said. “It’s a very difficult time.”

Cork Sinn Féin TD Donnchadh Ó Laoghaire wrote to the HSE on Friday, urging engagement with CareChoice to seek to resolve the matter and “to ensure the residents, many of whom are elderly and vulnerable, are protected”.

Correction 

An earlier version of this story reported that Beaumont Residential Care home on Cork’s Woodvale Rd will close. This is not correct. The facility is remaining open but is exiting the Fair Deal scheme from May 30. The Echo is happy to correct the record.