THERE ARE still going to be “serious funding difficulties” with the Fair Deal scheme this year even after €100 million diverted from it for other services for older people is put back into it, it has emerged.
Minister for Health James Reilly disclosed that while his investigation into the operation of the Fair Deal scheme was continuing, he could see at this stage that there would be serious issues around the funding of the nursing home support scheme.
The scheme started in October 2009 as a means of funding long-term care for the elderly.
Under it, older people must contribute 80 per cent of their disposable income towards the cost of care.
There is also a facility for applicants to defer the cost of their care until after their death.
Asked whether the €100 million now being put back into the scheme by the Health Service Executive would be enough to keep it going for the rest of 2011, Dr Reilly said: “I think, as I said at the outset, there’s going to be serious funding issues.”
He added: “I mean, we’ve been left with a hell of a mess by the last government. I mean, there’s not just this issue, but right across all the departments [in health], monies that were supposed to be provided for have transpired not to be there, so we’re going to have a serious challenge ahead and we’re working on that at the moment as well.”
A week ago, it emerged the HSE had told hospitals that money allocated for the running of the Fair Deal scheme this year was running out already, and it had suspended the approval of new applicants pending clarity in relation to future funding.
At the end of April, more than 22,000 older people were receiving financial support under the Fair Deal, and the €1 billion set aside for the scheme this year could not fund any more entrants to the scheme, the HSE said.
However, it later announced it would continue to accept applications for funding, but would only approve them if more money became available.
On Friday, Dr Reilly said it had transpired that €100 million assigned to finance the Fair Deal scheme had been used for other purposes such as paying for drugs and therapies for older people.
He said it was “only proper that money be brought back from the ancillary services and put back into the Fair Deal scheme which will allow for the continued processing and approval of people who want to go to nursing homes”.
Asked yesterday what services the HSE would cut to put €100 million back into Fair Deal, he said a host of issues to do with the scheme still had to be examined and clarified. This included the assessment tool for admission to nursing homes in different regions, the appropriateness of sending people directly from hospitals to nursing homes, and eligibility for therapies.
The HSE said the total budget available to it for long-term residential care, including Fair Deal, had always been and would continue to be used exclusively for the care of older people resident in nursing homes.
It was in ongoing discussions with the Department of Health “to identify ways of addressing current and future demand for nursing homes places”.
It is understood to be seeking clarity from the department in relation to the Minister’s suggestion that it put €100 million back into the Fair Deal scheme, and in relation to from where this money should now be taken.