Department of Health forced to rethink care homes' nursing rates after legal challenge

A legal challenge by Care England has forced the Department of Health and Social Care (DHSC) to conduct a national review into the rates paid for nursing in care homes.

NHS-funded nursing care (FNC) is provided by a registered nurse for people living in a care home. The NHS pays a flat rate contribution directly to the care home towards the cost.

The government has agreed to consider forcing the NHS to pay more for the 2019/20 FNC rate, to ease the financial strain care homes say they face.

Care England, which represents care homes, took legal action on the grounds that the FNC’s current funding formula does not, in some cases, even cover a care home's costs. Martin Green, chief executive of Care England, said: “We welcome the move by the DHSC to look again at the 2019/20 rate and we will ensure we participate openly and fully with the review.

“We hope this can be conducted speedily and a new rate decision made that increases the current rate to that which properly reflects the costs of providing nursing to many thousands of people living in nursing homes.”

Nursing homes rely on registered nurses being permanently onsite but nurses make regular visits to basic residential care homes. Care England has criticised the assumption that care providers do not employ more than 10 per cent nursing hours through agency nurses and questioned the view that care home providers are capable of making efficiency savings of 3.1 per cent.

The care organisation has argued the Department’s approach to calculating inflation limited the FNC rate.

A spokeswoman for the DHSC said: “The Department has agreed to review the 2019/20 NHS-funded Nursing Care rate and any outcome will be announced in due course.”

The FNC review’s findings are expected to be announced later this year.