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NEWS RELEASE FROM THE
REGISTERED NURSING HOME ASSOCIATION IN WALES

Issued 28th February 2002

NURSING HOMES IN SOUTH WALES WARN
OF 'CARE CRISIS OF UNPRECEDENTED PROPORTIONS'
- ULTIMATUM ON FEES FROM SOCIAL SERVICES
PUSHES HOMES TO THE BRINK

Around a hundred nursing homes across South Wales say council social services departments are putting patients at risk because of their 'hard line' stance on fees.

Nursing homes in Swansea, Newport and other areas have been told there is no money on the table to meet rising costs over the coming year. They claim the councils' 'take it or leave it' attitude is pushing them to the brink of closure because the amount of money they receive for social services-funded patients falls far below what it is costing them to provide the care.

If the current dispute continues unresolved for a few more months, nursing home owners warn that there will be many more closures in a part of Wales that has seen a dramatic decline in nursing home beds over the past year. This, they say, will create a 'care crisis' of unprecedented proportions.

Commented Mr Ramsey-Williams, chairman of the Registered Nursing Home Association in Wales: "In effect, we have been given an ultimatum by social services. They expect us to carry on providing 24-hour care for patients at the current level of fees, which is entirely uneconomic and which they are unwilling to negotiate on."

The nursing homes say that their costs have been rising faster than income. Over the past three years wages have shot up by 30 per cent, whilst the fees paid by social services department have increased by only 8 per cent.

Further wage increases are in the pipeline for the next twelve months with no prospect of a corresponding rise in fees before April 2003.

Nursing homes are also facing steep bills as they strive to comply with hundreds of new regulations governing their facilities, such as the width of the doors in their premises.

Added Mr Ramsey-Williams: "We have asked the councils for an increase in fees to cover our rising costs in the year ahead and to help make up the enormous gap between our income and our costs over recent years. In real terms, we are simply trying to get back into the financial balance we had back in 1992."

The RNHA in Wales, which has been supporting the nursing homes' case, says it would willingly sit down to negotiate with the councils to find a solution if there is genuine flexibility on fees.

Said RNHA director in Wales, Mr Emlyn Davies: "We are not taking up a rigid position on this. We want to reach agreement. But it takes two to do that. We hope very much that social services will be willing to take a more conciliatory approach before this crisis gets really out of hand."

He added: "We will do everything we can to minimise disruption to patients if the crisis escalates further. Our dispute is with social services. But we cannot survive if fee levels are not raised. We have given notice of our need to raise fees from May but social services have responded by stopping all referrals of new patients."

END

For further information please contact:

Anthony Ramsey-Williams, RNHA chairman in Wales, based at Campion Gardens Retirement Village in Swansea (Tel: 01792 235329 or 234997)

Emlyn Davies, RNHA director in Wales based at the Marina Nursing Home in Swansea (Tel: 01792 644299 or 01792 301025)