24 August 2001
Under the deal, backed by the Scottish Executive, a review panel will investigate the real costs of caring for the elderly in residential and nursing homes. It will report in three months.
Scottish Care, which represents 800 private nursing home owners, had demanded an extra £50 per patient per week from local authorities. It argued that fees of up to £336 a week for residents were not covering the private homeowners' costs.
Local authorities had refused to increase fees, claiming that budgets were too constrained.
Scottish Care responded by refusing to take any council referrals in Aberdeen, while homes in North and South Lanarkshire had given six months' notice that they would do the same.
The review means that Scottish Care will call off its action, which threatened to become nationwide. It will also accept the Scottish Executive's original offer of an extra £1.75m, or £10 a week per patient.
But the working group's decision is not binding, although Scottish Care said it was confident that its funding problems would now be recognised.
Health Minister Susan Deacon said the decision was a major breakthrough. 'We are committed to looking at the specific issue of fees,' she said.
PFaug2001
