Bartra OPCO (Northwood NH) Limited is challenging what they’ve declared as inadequate financing increases offered to them under a state programme to support long-term residents’ care. The High Court case is being held by Bartra, who manages the Northwood Residential Home located on the Old Ballymun Road, Santry, Dublin 9, home to 118 beds.
The company is one among many that run nursing homes across the country. Through the ‘Fair Deal scheme’, they contend, they get funding from the state to pay for a portion of the expenses associated with rendering care to enduring residents of approved private nursing homes.
Funding levels for each nursing home through this programme is hashed out between the providers and the National Treatment Purchase Fund (NTPF). The NTPF, a government agency, is tasked with reducing public healthcare system’s treatment waiting lists, as well as hammering out deals with nursing homes about the scheme.
Bartra alleges that when they entered discussions with the NTPF in 2022, they asked for a 10 per cent increase, equating to an extra €127 per resident weekly, in their scheme payments. This hike, prompted by annual inflation and cost increases, would have elevated the total payment to €1,392 per resident each week.
They further maintain that after rounds of dialogue and evaluations spanning months, the state agency’s several offers, reported to be lesser than their initially requested increment, were turned down by the nursing home. In December 2023, NTPF is said to have put forward a final proposal to Bartra, with the state agency terming it as “fair”.
The final offer stipulates that the nursing home would receive a cap of €1,320 per resident between 1st January to 30th April 2024, and €1,365 per resident from 1st May 2024 until 30th April 2025.
The nursing home, Northwood, deems the proposition neither equitable nor rational and ventures to contend against it through a review from the High Court. Revenue generated from this plan constitutes roughly 95% of Northwood’s income. Northwood argues that the proposal, which allegedly appeared after a holdup in discussions by the NTPF, coupled with a denial to retroactively apply the disbursement starting from the negotiation onset, will cause the enterprise to suffer financial repercussions.
The nursing home maintainer contends that the NTPF provided inadequate explanations for the proposal, alleging inconsistency in comparison to the handling of similar requests for augmented funding from other nursing homes. Northwood warns that any disapproval of the NTPF’s ultimate proposal presents the daunting possibility of the facility’s deletion from the sanctioned homes list, consequently jeopardising its ability to operate.
In a setting where, according to Northwood, there is a power disparity between the NPTF and the nursing home care providers, its residents would be forced to seek alternative care options. Moreover, Northwood alleges that the proposal was presented in violation of the NTFP’s own advertised protocols.
Championed by Paul Gallagher SC and David Fennelly BL representing its case, Northwood approaches the court for diverse declarations and injunctions. These encompass orders nullifying the respondent’s resolution and its advertised protocols. It also requests various confirmations asserting that the respondent neglected to consider pertinent factors, overly focused on irrelevant topics, and acted irrationally, illegally, and in breach of Northwood’s rights.
Represented in its plea, Northwood is in violation of impartial procedures and of its obligation to substantiate reasons. The lawsuit was brought before Justice Niamh Hyland on Monday, who unilaterally permitted Northwood to proceed with the challenge. The case will be heard again in court next month.