Survey shows huge disparity in nursing home charges

RESIDENTS of private nursing homes in Leinster are paying up to €500 more per week than patients of homes in Connacht.

The first national survey of private nursing homes has revealed that prices vary hugely depending on location and size, ranging from €328 per week in Co Roscommon to €825 per week in Dublin.

The overall average weekly rate for the entire country was €557. For those staying in homes with 60 beds or more, the average weekly rate was €727.

The smaller nursing homes, with less than 25 beds, came out cheapest, offering an average weekly rate of €487. Those with bed numbers ranging from 26-59 charged average weekly rates of €524 up to €554.

The survey, carried out by Limerick-based healthcare consultants BDO Simpson Xavier, found a 47% difference in the weekly rate charged in Leinster compared to Connacht.

The authors of the report blamed the huge price gap on the “significantly higher cost differential associated with operating a nursing home in Leinster”. The average weekly rate in Leinster is €622 compared to €422 in Connacht.

In terms of bed supply, Connacht has the lowest population per bed, with one nursing home bed per 189 inhabitants, while Leinster has the biggest pressure on beds, with one bed per 281 inhabitants.

However, the Irish Nursing Homes Organisation (INHO) has warned the Government against bringing too many new beds into the system, arguing that it will reduce occupancy rates from an average of approximately 89% to 72% by 2011, forcing many operators out of business.

INHO chief executive Paul Costello said a Government capital allowance scheme for the construction of nursing homes, introduced in the 1997 Budget, should be abolished.

“If the planned development in both the private and public sector proceeds then occupancy levels will continue to fall to levels where the viability of many nursing homes will be called into question. The minimum occupancy level for homes to remain commercially viable is 84%.

“Irish nursing homes are currently at this level and with the Government’s stated intention for an additional 5,600 beds over the next seven years the ratio of supply and demand will not be viable for many operators,” Mr Costello said.

The Government is planning to introduce the extra beds under public private partnership, where the private sector will build the homes, the health boards will staff them and the State will then lease them for 25-30 years from the private sector.

But Mr Costello said the situation had already reached a critical point with a 43% increase in the number of private nursing home beds between 1995 and 2003.

He dismissed health board claims that new homes were required because the private nursing homes were “cherry picking” less dependent residents.

The survey showed, he said, 66% of private nursing home resident require high dependency care and support.