New scheme to see care patients’ money invested

MONEY belonging to patients in long-term care will be placed in approved investments or stocks under a new scheme approved by the Department of Health.

According to the most recent estimates, the state held over €69.3 million in patients’ private accounts in 2005. However, this money is expected to increase significantly following the illegal nursing home charges debacle with repayments to patients or their estates averaging €21,000.

The Public Accounts Committee (PAC) heard yesterday that, according to new legislation and guidelines being prepared, the Health Service Executive (HSE) will be allowed to invest patients’ funds.

“Money may also be invested by the HSE on behalf of the patient in financial institutions authorised by the Financial Services Regulatory Authority and the National Treasury Management Agency,” read a Department of Finance briefing.

Under the plans, there will also be an annual audit of the accounts by the Comptroller and Auditor General (C&AG).

C&AG, John Purcell, yesterday said the money’s security was of “paramount importance” considering that many patients were elderly and would have no input into the investment.

Mr Purcell warned that the patients’ monies could not be invested in risky or equity-based schemes. Investments in “secure stocks” with less remuneration would be better, he said.

A similar system presently operates with minors where courts approve investments. Under Department of Health plans, no money in excess of €5,000 a year can be used for the benefit of the patient without the approval of the Circuit Court.

Prior to the establishment of the HSE, private patients accounts were handled differently by each of the old health boards. Many deducted fees for minding the accounts without the appropriate legislation in place. Under the Repayment Scheme Act 2006, the HSE is now authorised to impose charges on patients for the administration of their accounts.

TD Joe Higgins warned the PAC yesterday that it was important that patients’ funds were managed properly as many were vulnerable due to their age or frailty.