Select Committee on Health Sixth Report


8  Wider issues concerning the continuing care and RNCC systems

172. In addition to concerns about eligibility criteria and their implementation, several wider issues concerning the continuing care system and the RNCC system have been raised in our evidence, which the Government must take account of in its review of continuing care. The first is that under the current system it is difficult to obtain continuing care funding for care at home, and patients cannot have the flexibility of direct payments. Secondly, we have been told that both systems have perverse incentives which promote increased dependency rather than independence. Finally, our evidence also suggests that Government contributions towards care, whether continuing care or nursing care, may not directly benefit the patient at all, and may, in some circumstances, positively disadvantage them.

Lack of flexibility in the delivery of continuing care

173. One of the advantages of the large-scale closure of long-stay NHS wards and hospitals was that it encouraged more people to live, and to be cared for, in their own homes. As the Minister pointed out, this is the preference of the vast majority of older people. Guidance has repeatedly emphasised that continuing care can be delivered in any setting, including patient's own homes. However, in practice it can prove difficult to secure full NHS continuing care funding for patients being cared for at home. Pauline Thompson of Age Concern explained the problems this causes:

174. It is possible to provide NHS continuing care to people in their own homes, but it involves a creative interpretation of the law. This issue was particularly highlighted by the Pointon case, where Malcolm Pointon had been benefiting from direct payments to support his highly personalised and successful arrangements for care at home, but these arrangements were then jeopardised when he was granted fully funded continuing care, as the NHS is legally unable to make direct payments. In Barbara Pointon's view, the single measure that would most improve the continuing care system would be the introduction of direct payments.[145] The Minister told us how health officials and local council officials had worked together innovatively to interpret existing legislation in order to enable Mrs Pointon to provide for her husband's care as she had done before he became eligible for NHS continuing care. According to the Minister, "the question is whether we should be expecting people to work innovatively in order to get round the law, or whether we should just change the law".[146]

175. We recommend that within its review of continuing care, the Government should take steps to enable continuing care to be delivered more flexibly than is currently the case. Care should be organised according to a person's needs, and the funding system should recognise that an institutional setting is not the only, and may not be the best, place for these needs to be met. The Green Paper on Adult Social Care attaches particular importance to the development of direct payments and to giving people greater autonomy in making care arrangements. We welcome this, and urge the Government to consider ways in which the care arrangements supported by direct payments can be maintained if people are re-assessed as having health care needs.

Perverse incentives towards increased dependency

176. Several submissions drew attention to the perverse incentives within the RNCC system. The RCN argued that a major problem with the current system is that it may in fact promote increased dependency:

177. If a home succeeds in achieving a degree of rehabilitation for residents and improves their quality of life, it will often find itself financially penalised when residents who have regained some independence subsequently have their RNCC banding revised downwards, reducing the payments made to the home. This acts as a perverse incentive, and may deter homes from providing intensive rehabilitation to patients. If a patient then regains independence and their RNCC funding is reduced, their care home may consequently devote less nursing time to them, when actually ongoing high quality nursing care is needed to maintain their independence.

178. John Pye of the RCN expanded on this in oral evidence, drawing on examples from his own practice:

    We have a number of patients who we have assessed using the RNCC and those assessments were made on the wards in hospitals and were high bands. We placed them into our local nearby nursing homes where they have very good care, and their dementia has been treated accordingly. They are now improving substantially, and we have now gone in and re-banded those patients and given less finance to the nursing home to look after them, which has a massive detrimental effect both upon the individuals themselves potentially but also on the business of the nursing home to try and maintain the same level of standards which they wish to have.[148]

179. When we put this to the Minister, he seemed unaware of the specific problem with the RNCC, although he recognised that one of the problems of the wider social care system was that it promoted dependency:

    Chairman: The RCN said, "Currently the criteria focus on the level of a patient's dependency. This creates a perverse incentive whereby if a patient's condition improves the level of funding available decreases." Is that something that you are conscious of and is it something that you might be able to address?

    Dr Ladyman: I had not thought about it in those terms, but what I am absolutely committed to is helping people maintain their independence. I believe that the way we have adult social care and some aspects of health care structured in this country at the moment encourages dependency instead of independence.[149]

180. We were deeply concerned to hear that the RNCC framework has inbuilt perverse incentives which reward dependency rather than rehabilitation and independence. Homes that are able to provide nursing care which successfully achieves rehabilitation for residents and improves their quality of life often find that they are penalised, as those patients then have their RNCC bandings reduced, and consequently payments to the home are reduced. This fails to recognise that it is precisely the level and quality of nursing input which enables individuals to be maintained at a higher level of independence and that this is jeopardised by reducing the RNCC payment. Conversely, homes that fail to provide sufficient nursing inputs to improve the health and well-being of residents will often have them assessed at higher bandings because of their resulting dependency, which may in fact reward poor care practices. The Minister told us that he was "absolutely committed to helping people maintain their independence". If this is the case, the Government must fundamentally redesign the RNCC and continuing care funding systems so that they have inbuilt incentives which reward high quality care rather than penalising it.

Does the contribution benefit patients?  

181. During our inquiry into Delayed Discharges, the then Minister (Jacqui Smith) and the Chief Inspector of Social Services (Denise Platt) both suggested that the money provided through the RNCC should directly benefit the residents for whom it was intended.[150] However, our evidence suggests that when people are awarded RNCC payments, some homes then increase their charges to residents by sums at least equivalent to the RNCC payments, leaving the resident no better off. Pauline Thompson of Age Concern gave us an example of a man whose wife was moving into a care home who was initially told that the fee would be £450 a week, and then when it transpired that she would be receiving RNCC funding of £125 per week, the fees went up by about £125.[151]

182. The Minister told us he had "no doubt" that "some nursing homes have put their fees up in order to exploit self-funders".[152] However, he stated that as "Nursing care is delivered free by the National Health Service and we reimburse nursing home owners for it", no one should be charged for nursing care, and patients and their relatives should ask for itemised bills to ensure that they are not being charged.

183. In fact, the RNCC band payments, which are established nationally, do not directly relate to the nursing care needs of an individual, or their actual costs. The bands have no relationship to the amount of time a registered nurse will actually need to spend with an individual, and also have no bearing on the nurse staffing levels required by the Commission for Social Care Inspection (CSCI) as a condition of registration of the home. Independent studies have demonstrated that across England as a whole, the average gap between actual fees paid to homes, including the RNCC element, and the fair fee for homes which are fully compliant with CSCI staffing regulations, is of the order of £127 per week for nursing care.[153]

184. It follows that the additional costs of nursing care must somehow be recovered by care homes. The Minister's comment that no one should be charged for nursing care does not adequately reflect the current realities of the situation. Either the real costs are shown on an itemised account, or they are included under euphemisms such as "extra - personal care". As Martin Green of the English Community Care Association told us, "we need to get this assessment process really clear so that there is a robust and accountable approach for both the care needs, but also what those care needs cost".[154]

185. There is also anecdotal evidence to suggest that if a self-funding resident in a care home becomes eligible for continuing care, because of current rates of NHS continuing care funding, the home may face a drop in the fees paid and the resident may have to move to less expensive accommodation, or be asked to top up the NHS contribution to their care costs. Ms Thompson described the problem to us:

    We have had people who were told - because there is no choice of accommodation in the NHS in the same way as there is in the social services clients - when they were first thinking about asking whether or not they should get full funding, that they will not be able to stay in the same home. That, I find, really worrying because it meant that some people were still paying for their care who could probably well be being fully funded who have to decide that because of this risk of them having to move they will not apply for it. I have had cases where the person has been found to be needing full funding, and the particular home was more expensive than the NHS was prepared to pay [155]

186. If this is happening, it could also potentially lead to care homes being less willing to seek continuing care assessment for residents if their condition deteriorates and their needs increase.

187. Despite the fact that Ministers have claimed that the value of the RNCC should be passed on to residents, we have received evidence which indicates that homes habitually increase their charges to residents by sums equivalent to the RNCC payments, which leaves the resident no better off. We urge the Government to take positive steps to ensure that the value of the RNCC payment is passed on to residents; it is unacceptable for Ministers to state that this should not be happening but to do nothing to prevent it.

188. In addition to this, we have also received anecdotal evidence suggesting that if a self-funding resident in a care home becomes eligible for continuing care, because of current rates of NHS continuing care funding, the home may face a drop in the fees paid and the resident may have to move to a different care home, or be asked to top up the NHS contribution to their care costs. Not only does this present huge upheaval for residents, potentially forced to move from familiar surroundings to a different care home which is not their first choice, it could also mean that care homes are less likely to request continuing care assessments for their residents (particularly for those who are self-funding) if their condition worsens. We recommend that, as part of its review of continuing care, the Government investigates this apparent perverse outcome of its continuing care policy.


144   Q93-94 Back

145   Q92 Back

146   Q322 Back

147   CC21, para 5.4 Back

148   Q131 Back

149   Q330 Back

150   Health Committee, Third Report of Session 2001-02, Delayed Discharges, HC 617 - II, Q736, Q155 Back

151   Q122 Back

152   Q331 Back

153   Joseph Rowntree Foundation: Laing and Buisson, "Calculating a Fair Price for Care", May 2004, p ix Back

154   Q184 Back

155   Q111 Back


 
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