State admits it may owe patients billions

THE GOVERNMENT admitted yesterday that it may have to pay out billions of euro to people with disabilities and those resident in mental hospitals.

Following last week's Supreme Court ruling that the State had illegally charged nursing home residents for their care, Tánaiste and Health Minister Mary Harney said the Government was anxious to repay the illegal charges as soon as possible.

But while the Government has yet to decide whether the Statute of Limitations should be invoked to limit payments to the last six years, Ms Harney confirmed the statute could not apply to anyone who was charged while "not of sound mind."

The development means 11,000 intellectually disabled long-stay patients and those otherwise of unsound mind currently in care will not be barred from seeking repayments going back beyond the Statute of Limitations whatever decision the Government makes.

It is not known how many deceased patients of unsound mind were in long-stay care over the past 30 years. However Ms Harney yesterday indicated that the Government would endeavour to repay the estates of deceased patients who were illegally charged.

The issue impacts on a potential 275,000 patients illegally charged for care.

New legislation allowing for charges to be levied in future was approved by Cabinet today, and will be published later this week.

A Cabinet sub-committee, comprised of Ms Harney, Taoiseach Bertie Ahern, Finance Minister Brian Cowen and Attorney General Rory Brady, will also meet today to begin deliberating whether or not to prevent all cases more than six years old from seeking repayments.

The sub-committee, which will also examine options for a scheme to enable people to be repaid as quickly and as easily as possible, is expected to report back to Cabinet by next Tuesday.

Although the Tánaiste once again pledged that health spending would not be affected, a spokesman for the Government last night conceded the Government had no real idea how much it will have to pay out in repayments.

"We're not absolutely sure what the exposure might be," the spokesman said.

Anything from €500m to more than €2bn has been suggested depending on whether cases are statute barred or not.

The Opposition immediately claimed that the Government was stalling on the issue by establishing a Cabinet committee.