A nursing home operator has launched a High Court challenge over what it says is an insufficient funding increase offered under a State scheme to provide care for long-term residents.
The action has been taken by Bartra OPCO (Northwood NH) Limited, which operates the 118-bed Northwood Residential Home on the Old Ballymun Road, Santry, Dublin 9.
It is part of a group of companies that operate nursing homes in the State.
It claims that under what is known as the 'Fair Deal scheme', the State provides funding to approved private nursing homes to cover a certain amount of the costs of providing care to their long-term residents.
The level of funding each nursing home gets under the scheme is agreed between the provider and the National Treatment Purchase Fund (NTPF).
The NTPF is a government body whose functions include reducing waiting lists for treatment in the public healthcare system, as well as negotiating with nursing homes in relation to the scheme.
'Fair offer'
The applicant claims it entered into negotiations with the NTPF in 2022 where the nursing home sought a 10 per cent increase to the payment it receives under the scheme, amounting to an additional €127 per week per resident.
That increase would have brought the price paid to the applicant to a total of €1,392 per resident per week.
The level of the increase sought was due to the increase in annual inflation and costs.
It claims that, following months of discussions and reviews, the nursing home declined to accept several offers made by the NTPF, which it says were well under the increase it had sought.
In December 2023, it is claimed the NTPF made a final offer to the applicant, which the state body described as being a "fair offer".
Under that offer, the nursing home would be paid a maximum price of €1,320 per resident from January 1st, to April 30th, 2024, and €1,365 from May 1st, 2024, to April 30th, 2025.
However, the nursing homes claims that the offer is neither fair nor reasonable, and has sought to challenge it by way of High Court judicial review.
Approximately 95 per cent of Northwood's revenue is derived from the scheme.
It claims that the offer, which it says came about after the NTPF had delayed the negotiating process, and the refusal to backdate the payment to when discussions commenced will result in the business sustaining financial losses.
The nursing home operator claims the NTPF has not given proper reasons for the offer, and says the process is inconsistent compared to how the NTPF has dealt with bids for increased funding from other comparable nursing homes.
Power imbalance
The nursing home says that any rejection of the NTPF's final offer gives rise to the very real risk that the facility would be removed from the list of approved homes and that the facility would have to close, and Northwood's residents would have to make alternative care arrangements.
The applicant further claims this situation leads to a power imbalance between the NPTF and nursing home care providers.
It also claims the offer was made following a breach of the NTFP's own published procedures.
Represented in its action by Paul Gallagher SC, with David Fennelly Bl, the applicant seeks various orders and declarations from the court.
These include orders quashing the respondent's decision and its published procedures.
The applicant also seeks various declarations that the was in breach of fair procedures and of its duty to give reasons.
It also seeks declarations that in arriving at its decision the respondent failed to take relevant matters into account, and placed undue weight on irrelevant issues, that its decision was irrational, unlawful and is in breach of the applicant's rights.
The case came before Ms Justice Niamh Hyland on Monday, who on an ex-parte basis granted the applicant permission to bring the challenge.
The matter will return before the court next month.
