There are concerns around the financial stability of a number of nursing homes in the State, the board of the health and safety watchdog has been told.
In July, the chief inspector of the Health Information and Quality Authority (Hiqa) presented a report to the board which highlighted a number of issues, including the finances of registered premises providing care to older people.
According to the report, obtained under Freedom of Information laws, eight nursing homes were found to be non-compliant with tax, which prevents the Health Service Executive (HSE) from paying the monthly Fair Deal payments to the registered provider.
Under the Fair Deal scheme, an individual in receipt of care pays a certain amount towards the cost and the HSE pays the rest. Fair Deal covers approved private nursing homes, voluntary nursing homes and public nursing homes.
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The inspector said the issue of tax compliance came up in eight nursing homes, which were operated by different registered providers.
“Of these, six were part of a recognised group while the other two are linked through common directors. Where lack of tax compliance prevents the payment of monthly Fair Deal monies, the HSE will alert this office as it may pose a risk to the safety of residents,” the report to the board said.
The chief inspector also highlighted how the recognised provider of two nursing homes was the subject of court proceedings in relation to the pursuit of debt.
In addition, the registration of a nursing home in Co Kildare was cancelled by Hiqa on May 17th, 2024, due to the risk to residents as a result of financial instability, the chief inspector said.
When Hiqa cancels the registration of a designated centre, the operator is no longer permitted to provide care services. The HSE has responsibility for making alternative arrangements for residents upon cancellation of a centre.
[ Irish nursing homes are ‘at a critical juncture. Something needs to be done’Opens in new window ]
The concerns about financial stability of centres raised by the chief inspector come after liquidators were appointed to the operator of two Dublin nursing homes in June last year.
Passage Healthcare International (Ireland) Limited operated the 74-bed Lucan Lodge Nursing Home and the 41-bed Sally Park Nursing Home in Firhouse.
[ Provisional liquidators appointed by High Court to Dublin nursing home operatorOpens in new window ]
In June the High Court ruled it was satisfied the firm was insolvent and unable to pay its debts as they fall due, with the judge noting the company’s difficulties were primarily caused by the impact of the Covid-19 pandemic.
The Sally Park Nursing Home ceased operating in February last year due to fire safety issues that the operator said would cost in excess of €1 million to rectify.
The director of the company previously told The Irish Times this cost would be “colossal” for a small nursing home that is already loss-making, resulting in their decision to close the premises.
Asked about the status of those premises were deemed to be non-compliant with tax, a spokeswoman for Hiqa said these issues come to the attention of the body “from time to time”.
“Inspectors engage directly with non-compliant providers to ensure residents’ care is maintained. Escalated regulatory action, including cancellation, may occur if a provider fails to demonstrate sufficient resources to meet residents’ needs,” she said.
Nursing Homes Ireland, the body representing private nursing homes, has repeatedly warned about the financial challenges facing the sector due to increased costs. A report by the body published in November found 51 per cent of nursing homes did not report a profit in 2023.
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