A Laois County Councillor has said the Irish State is not ‘getting value for money from private agencies’.
According to Independent Cllr Aisling Moran, Ireland is ‘squandering millions of euro through outsourcing, which is leading to unnecessary costs for the Irish taxpayer’.
Independent Cllr Aisling Moran raised the issue at the County Council’s April meeting, where she called on the HSE Liaison Officer with responsibility for the carers in Laois to explain the costs paid to agencies.
“Privately owned agencies are contracted by the HSE to provide carers in our communities, and provide support for the sick, the disabled, and the elderly in their own homes,” Cllr Moran said.
“This is a very valuable service, allowing for shorter stays in hospital or respite care.
“People can now be looked after by their families and friends, in familiar surroundings with the help of carers for a couple of hours each day. This save the state millions of euro each year.
“I tabled a similar motion a couple of years ago when I was informed that these privately-owned agencies, who provide carers into our homes, are paid for the hours that are contracted to them – not what they do.
“In the event that the agencies are short-staffed and cannot complete the hours contracted, they do not have to pay back the hours that were already paid to them.
“If this is the case, then it would appear that it is financially better for the agency to be short-staffed than to pay carers to work.”
Cllr Moran said the last time she looked into the matter, the agencies were being paid approximately €40 per hour, but they pay staff an average of just €12 per hour.
The Independent Cllr said this was a “ridiculous” profit-level, even allowing for other overheads and expenses.
“If the agency cannot provide the service that they are contracted to do, then why would they be getting paid for it?
“If the HSE were responsible for the hiring and placing of carers then for the same €40 per hour, they could provide three carers – and pay them a better wage.
“There would be a bigger pool of carers to call upon, with staff benefitting from better pay. Surely this is a win-win for our communities, our carers, and for the taxpayer.”
Cllr Moran drew comparison with the ongoing refugee crisis and the care provided for them by the State.
“Just ten minutes from here, we have provision for 950 beds in Stradbally.
“Of this 950, when the six Councillors from the Graiguecullen-Portarlington Municipal District visited the site a couple of months ago, only 35 beds were actually in use.
“The private company providing this accommodation are paid for 950 beds, regardless of occupancy, in the region of €100 per night (per bed).
“That’s €95,000, by 90 days, is €8.5 million. If they were to only be paid for the 35 beds for the 90 days, they would have been paid €350,000.
“That’s a difference of €8.15 million of taxpayers money that is being used for no beds, for no accommodation.
“This is just one example of one provider; imagine the profits being made by these private companies nationwide.
“Those providing accommodation services are being paid, whether or not the service is being provided. This is an unnecessary cost to the taxpayer, and is being paid to private entities.
“We are in the middle of a health-crisis, and here are two examples of millions of euro being wasted through outsourcing to private companies.”
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