Legality of subvention scheme queried

Minister for Health Mary Harney has sought legal advice on whether the State faces further liabilities in relation to the illegal…

Minister for Health Mary Harney has sought legal advice on whether the State faces further liabilities in relation to the illegal nursing home charges from thousands of medical card patients who were cared for in private nursing homes. Liam Reid, Political Reporter, reports.

Yesterday the Government confirmed it was now examining the issue of the legality of a subvention scheme to such patients.

The scheme provides subsidies, at rates of up to €190 per week, to patients in private nursing homes unable to get beds in public institutions due to lack of space. Patients' incomes and pensions have been used to make up the balance of the nursing home charges.

Most of the people in receipt of the current subvention have medical cards, as the medical card was extended to all persons over 70 years of age four years ago.

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The subvention scheme was the subject of a highly critical report by the Ombudsman's office in January 2001, which criticised the means-testing system as creating severe financial hardship for patients and their families. The Ombudsman also criticised the fact that many had no choice but to go to private homes because there were insufficient facilities in the public institutions.

In a statement following the Supreme Court decision last February, the Ombudsman Emily O'Reilly said the issue of charges relating to medical card holders and private nursing homes needed to be examined by the Government. She said the current controversy "does not deal with the issue of those medical card holders who could not be provided with a bed in a public institution, due to a shortage of such beds, and who were directed by the health boards towards private care, without in any way acknowledging their own responsibilities in the area".

Yesterday, Minister for Finance Brian Cowen confirmed to the Oireachtas Committee on Finance that the Attorney General had been asked to examine the private nursing home subvention scheme by the Cabinet subcommittee established to look at the illegal nursing home charges.

However, he refused to be drawn on the potential costs if the Government decided to include private nursing home patients in its compensation package.

"All I will say is that the Attorney General is looking at all aspects of this situation and will provide comprehensive legal advice to Government on these matters," he told the committee.

"Obviously we have to ensure that we comply with the Supreme Court judgment on the one hand and protect the taxpayer's interests on the other."

Ms Harney is to bring proposals to Cabinet on the issue next Tuesday. Illegal charges were levied on nearly 300,000 elderly and disabled people in long-term public care between 1976 and last year and the State faces a bill of up to €2 billion. The statute of limitations is expected to be applied to most charges pre-dating 1999, which is expected to significantly reduce the bill.