transitioning to a new set of quality standards in aged care

The Draft Aged Care Quality Standards have been released by the Department of Health. The development of the standards has been a collaboration between Government and the sector resulting is a single set of consumer-focused quality standards that can be applied across Commonwealth funded aged care programs.

This single set of standards will replace the current four sets of standards operating that operate across Residential Aged Care, Home Care Packages, Transition Care Programs and the National ATSI Flexible Care Program.

The standards are to be implemented from July 2018 and following a 12 month transition an assessment against these standards will commence in July 2019. Providers will need to adopt a whole of business approach to successfully implementing the new standards.

There are eight standards: Standard 1: Consumer dignity and choice Standard 2: Ongoing assessment and planning with consumers Standard 3: Personal care and clinical care Standard 4: Services and supports for daily living Standard 5: Organisation’s service environment Standard 6: Feedback and complaints Standard 7: Human resources Standard 8: Organisational governance

The existing individual program …

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good returns on home care packages

PROVIDERS CONTINUE TO MAKE GOOD RETURNS ON HOME CARE PACKAGES Under the changes implemented in February 2017 Home Care Package (HCP), once allocated a package from the national allocation system a consumer has 56 days to choose their Approved Provider. Geographical boundaries for Approved Providers have been removed and home care is an increasingly competitive, market driven environment. Comparing a recently released report on HCP financial performance for Sept 2017 to the report same produced for December 20162 shows that top quartile providers continue to achieve good profit margins and have increased their direct service provision hours.

In Sept 17 top quartile Band 2 (provider income $30 to $50 per client per day) providers are making $4,967 per annum per package; an increase of 11.3% on the Dec 16. Nice work!

Although the average profit margin for top quartile providers of Band 4 (provider income of > $100 per client per day) packages in Sept 17 has decreased by 4.8% compared to Dec 16 this group of providers is making $11,683 per package per annum. Still nice work!

Responding …

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acar analysis of 2016 results

results are in

The 2016-17 Aged Care Approvals Round (ACAR) results have been announced. Of the 10,000 places available in the ACAR 9,991 have been allocated with 60 places deferred.

The 2016-17 ACAR was the most competitive on record with providers applying for a total of 45,053 places. This is higher than 2015 where 38,868 places were sought and in 2014 just 19,169 places sought. Ideal contributed to the success of close to 15% of successful allocations in the 2016-17 ACAR.

Top five allocations net a quarter of all places

The top five providers in terms of number of places allocated were all for profit organisations. Between Lendlease (756 places), Signature Care (640), Aegis (353), Regis (352) and Infinite (305), the top five providers scooped up 24.4% of total places.

allocation based on need

Amongst other factors the Department allocated places based on their calculations of need – highest, high, moderate and low. While there was a preference for places allocated in areas of highest need there were still allocations in all categories. In Ideal’s experience this was based on a …

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home care update

The competition in your home care market has just increased…significantly

During March 2017 the Commonwealth will assign over 11,300 home care packages to eligible consumers. These are the home care packages that were unoccupied on February 27 2017 and those that have fallen vacant since that time. The Commonwealth will continue to make packages available as they fall vacant.

Prospective recipients will be assigned a package based their relative need and time they have be waiting. Once assigned a package consumers then need to choose an Approved Provider.

This create a consumer focused market in which businesses compete for custom. The level of choice for consumers is overwhelming. In most cases, especially for those requiring a low care package, it will be their first interaction with funded aged care services. They will need to contact a provider directly and provide their ‘unique referral code’; alternatively they can request MyAgedCare to send an electronic referral on their behalf.

Home care – a very competitive environment

The traditional protected environment in which home care providers previously operated is no more. The changing …

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home care business plan template

In response to enormous interest in the aged care Home Care market The Ideal Consultancy has developed a business plan template for new providers to use as a guide to setting up a Home Care business.

The plan is provided as a fully editable Word document and guides the user through various elements of setting up a Home Care service.

The plan includes sections on:

business goals organisational structure your target market SWOT human resource considerations service delivery insurances, risk management and legal considerations (note Ideal does not provide legal services) operations sales & marketing financial considerations

Priced at just $1,650 this valuable resource is a great way to get you started and is useful in developing your application to become an Approved Provider of Home Care.

The Ideal Consultancy can also assist in applying to become an Approved Provider; contact us to discuss our fixed fee arrangement.

An order form for the Home Care business plan template is provided here: 000000 home care business plan order form

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strc results 2016 acar

Congratulations to all successful applicants in the 2016 STRC part of the Aged Care Approvals Round (ACAR). Below is a short summary of places allocated.

Regional response to the 2016-17 ACAR – STRC     state/territory # of applications # of providers successful places sought places made available success rate per application success rate per place NSW 162 10 6,507 103 6.2% 1.6% VIC 110 14 3,445 116 12.7% 3.4% QLD 121 5 4,191 111 4.1% 2.6% WA 51 4 2,787 83 7.8% 3.0% SA 28 4 637 32 14.3% 5.0% TAS 17 1 240 10 5.9% 4.2% ACT 8 1 114 10 12.5% 8.8% NT 6 2 80 10 33.3% 12.5% Total 503 41 18,001 475 8.2% 2.6%


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myagedcare review

Earlier this year the department commissioned independent research to evaluate experiences and perceptions of the aged care system and My Aged Care initiative among service users (clients, carers, assessors, service providers and health professionals). The report is available at:

Although a relatively small sample the report provides interesting insight into the aged care system.

It included surveys of:

·       3,429 members of the general public aged 40+ years

·       300 Service providers; including 212 providers funded through CHSP

·       176 Aged care assessors; including 138 working for RAS under MyAgedCare

·       151 Health care professionals; including 101 GPs

and qualitative interviews

satisfaction with the aged care system

Satisfaction with the aged care system overall was clearly correlated with My Aged Care experience. Those who had contacted the Gateway in some capacity were consistently more satisfied with aged care provision than those who were carers or recipients with no experience of the new system. 72% of care recipients were satisfied with the aged care system; the higher satisfaction among care recipients appeared to be due to the lower expectations …

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evidence is king in the aged care approvals round

applying for places in the 2016-17 aged care approvals round (acar)

The ACAR 2016-17 makes 10,000 residential aged care places available nationally.

In the current 2016-17 ACAR, for the first time, places will be available at the state and territory level for residential aged care. The department has indicated for each SA3 in Australia the priority need for new places in this SA3; priority categories are segmented by need into highest, high, medium and low.

The distribution of new places across each state and territory seeks to achieve a balance in the provision of services between metropolitan, regional, rural and remote areas, as well as between people needing different levels of care.

Specific geographic locations, special needs groups and / or specified issues that area focus within each state and territory have been identified taking into consideration a range of factors including:

Population projections Current operational ratios Occupancy levels Information through the consultation process

The Department will prioritise suitable applications that meet the selection criteria, based on how well they address the provision of care for:

The geographical locations, special …

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hidden and not so hidden fees in aged care

The following excerpt has been released by the Department of Health on Friday 2nd September 2016.

information for approved providers of residential aged care homes: Additional services, including ‘capital refurbishment’ type fees

The department is aware that a number of providers have charged or are proposing to charge fees for additional services, including ‘capital refurbishment fees’ or ‘asset replacement contributions’ to residents. This information has been prepared to assist providers to understand their responsibilities when charging such fees.

This information does not constitute legal advice. Approved providers should seek their own independent advice.

legislative context

The Aged Care Act 1997 (the Act) and the Aged Care (Transitional Provisions) Act 1997 (the Transitional Provisions Act) regulate the amount of fees that aged care providers can charge to residents. Relevant provisions are found in Division 52C and Division 56 of the Act and Division 58 and Division 57 of the Transitional Provisions Act.

These provisions require that fees charged for, or in connection with, residential care, or for care and services specified in the Quality of Care Principles 2014 (the Principles) cannot …

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acfa annual report

the report

The Aged Care Financing Authority (ACFA) monitors the impact of aged care reforms on the funding and financing changes in the industry and on the equitable access by consumers to the sector.

The fourth report[1] (July 2016) report examines the aged care sector for the year 2014-15 and studies:

the structure and operation of the Australian aged care sector and its key characteristics; early observations on the impact of recent reforms; funding and financial performance of the sector based on 2014-15 data; and the emerging opportunities and challenges for the sector as significant reforms continue.

It has used Departmental data, sector surveys and stakeholder feedback to understand how the sector is responding to reform.

The following pages comprise some pertinent statistics from the report that providers may find useful in considering the impact of changes on the overall aged care sector.

consumer characteristics

There are no surprises that our population is ageing and will continue to age rapidly.

age 2015 2055 % no. % no. Aged 65+ 15.0% 3.6m 22.6% 8.9m Aged 85+ 2.0% 473k 4.9% …

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