Nursing home repayments reach almost €450 million

Figures reveal that the estimate for the cost of the scheme has risen over the past year

Figures reveal that the estimate for the cost of the scheme has risen over the past year

THE COST of repaying tens of thousands of older people and their families who were illegally charged for public nursing home beds has reached nearly €450 million, it has emerged.

The annual report of the Department of Health, which was published last week, says that total expenditure on the scheme until the end of 2009 was €447 million.

The report says that €80 million in funding was provided last year to meet the cost of repayments and that this was fully utilised.

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The 2009 annual report of the Department states that in that year, 2,853 repayments were completed at a cost of €76 million.

The estimate for the cost of the repayment scheme has increased significantly over the past year.

About 18 months ago the Health Service Executive (HSE) said it expected the total cost of the scheme to amount to about €350 million.

In addition, the Department of Health is facing about 340 legal proceedings from older people or their families who have bypassed the repayments scheme and are seeking compensation through the courts.

The repayment scheme was established by the Government to reimburse those who were wrongly charged for accommodation in long-term facilities despite having medical card entitlement to free care over a 30-year period from the mid-1970s until 2004.

A number of factors have contributed to bills increasing dramatically. These include higher-than-anticipated numbers applying for the compensation, and significant numbers successfully appealing the size of the award given to them.

Last April, The Irish Timesrevealed details of internal Government documentation which suggested that the average payout to more than 21,000 people or estates who were given offers of compensation came to just over €20,000.

The repayment scheme is administered by the HSE, in conjunction with KPMG and McCann Fitzgerald.

The annual report also says that in 2009 the Department of Health, which largely has responsibility for policy in the health area – with the HSE dealing with operational matters – dealt with nearly 6,000 parliamentary questions, more than 240 Dáil adjournment debates and 90 Seanad adjournment debates.

The report also says that the Minister for Health, Mary Harney, and the various ministers of State received more than 7,700 representations.

Martin Wall

Martin Wall

Martin Wall is the Public Policy Correspondent of The Irish Times.