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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: https://agedcare.health.gov.au/research-and-evaluation-findings

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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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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once upon a time in aged care

Once upon a time you were happily operating a residential aged care facility and making a nice profit.

Along came the aged care reforms and things started to change. The environment became more competitive, there were new fees and charges, transparent pricing information and changes to the revenue base. The reforms implemented more home care packages to help older people remain at home so the people needing residential aged care were older, frailer and sicker and they stayed for a shorter period of time. As a provider you were rewarded with higher payments for caring for these older, sicker, frailer people.

Then the government realized that the amounts they were paying to providers for care were growing more rapidly than expected and there were multiple competing priorities on the government purse. So from January 2017 the aged care funding changes mean the reward you as a provider were receive for looking after these older, sicker, frailer people will get smaller.

Lots of different groups looked carefully at the impact that these changes to funding would have. To varying degrees they …

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home care reforms – a golden opportunity for the not for Profit Sector

With the right service model, carefully articulated value proposition, robust business processes, leverage of organizational strengths, and commitment to mission and values the not for profits are well positioned to thrive in the future home care package market.

early days

Aged care in Australia started with not for profit organisations supporting marginalized and destitute people (mainly men) in the early 1900’s. Until the 1950s aged care services developed through voluntary organisations with various religious and social philosophies. Many well-known groups such as the Uniting Church, Red Cross and Country Women’s Association were heavily involved in caring for and advocating for the needs of elderly people. These organisations were small locally based organisations with their own governance structure who established the services and supports that they thought best met the needs of their community at this time. Legislation between the 1950s and 1980s fostered the development of locally based private and not for profit care providers. From the mid-1990s there has been the growth of corporate aged care and in recent years consolidation in both the for profit and not for …

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ACAR 2015 results

The Aged Care Approvals Round (ACAR) is the annual process for obtaining recurrent funding through the allocation of aged care places and packages.

The ACAR is the articulation of an organisation’s business plan and the opportunity to demonstrate its capability and capacity to expand its service. All applicants enter this highly competitive process thinking they are the best placed organisation and have the most valid claim for an application of places or packages.

Confirming the strong interest in residential aged care investment the department received almost double the number of places sought in 2014. Of the 10,940 residential care places allocated over one third are for the expansion / redevelopment / upgrade of an existing facility. Hopefully these applicants have carefully researched the needs and preferences of their potential consumers and are developing a product that meets the market expectations. Importantly understanding the market demand characteristics and determining preferred market position will continue to ensure success.

Competition for an allocation of home care packages is very tough; for every package allocated almost 20 were requested.  The 2015 ACAR is bittersweet …

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home care changes stage 1

The Aged Care Legislation Amendment (Increasing Consumer Choice) Bill 2016 was introduced into Parliament on 11 February 2016.  The Bill gives effect to the first stage of the home care reforms announced by the Government in the 2015-16 Budget.

Subject to passage of the legislation, the changes in Stage 1 will commence on 27 February 2017. The Bill will amend the Aged Care Act 1997 and the Aged Care (Transitional Provisions) Act 1997 in three main areas:

Funding for a home care package will follow the consumer, replacing the current system where home care places are allocated to individual approved providers There will be a consistent national approach to prioritising access to home care packages through My Aged Care Arrangements for providers to become approved under the Aged Care Act 1997will also be streamlined.

The following table is an overview of the proposed arrangements from February 27, 2017.

planning and allocation ·     Funding for a home care package will follow the consumer, allowing the consumer to choose a provider that is suited to them and to direct the funding to that provider.

·     No further Aged …

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short term restorative care programme

In the 2015 Budget, the Australian Government announced the expansion of flexible care initiatives. This included the establishment of the Short Term Restorative Care (STRC) Programme to increase the care options available to older people, and improve their capacity to stay independent and living in their homes.

In late 2015 the Department released a STRC Programme Policy Consultation Paper; in summary there was universal support for increasing access to short-term restorative care however the place numbers in relation to both the first tranche of places (200) and the total allocation (2000) were considered ‘limited’.

strc eligibility

An ACAT will be required to access STRC but unlike Transition Care Programs (TCP) participation will not be tied to a hospital admission.  STRC can be delivered in the home, a residential care facility or a combination of these.

The STRC Programme will be used by people who are not currently in receipt of Commonwealth subsidised residential, home or flexible care; a person could be receiving CHSP.

consumer directed

Care should be delivered in a way that empowers consumers to influence the design …

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aged care pricing commissioner annual report

The Aged Care Pricing Commissioner released the Aged Care Pricing Commission’s 2014/15 Annual Report this week.

The Commissioner observed that in the 2014/5 financial year “a far more consistent emphasis is being placed by providers in setting their prices on the assessment of the product that is being offered to people in terms of its quality and amenity. A greater focus on market expectations in respect of the value of the accommodation for the price proposed seems apparent.”

And that there is “some increasing homogeneity in the size, quality and amenity of the accommodation offered within particular price parameters in metropolitan cities. For example, within 10 kilometres of Sydney and Melbourne central business districts there are patterns, although not definitive, of prices per square metre being charged for rooms of broadly similar quality and amenity……. a correlation between the nature of the product and its price is observable.

“One-off” higher prices for particular rooms that are not justified by the relative standard of accommodation in a facility are not being sought in the above-threshold market.”

applications for higher accommodation payments

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MYEFO = increased consumer funding of aged care

Yesterday, Treasurer Scott Morrison released the MYEFO which included review and reduction of funding to the aged care sector.

The reality is the government faces a huge financial challenge in returning the budget to a surplus and will look for savings wherever possible. Each budget announcement seems to include pain for the aged care sector. The Ideal Consultancy expects that the scrutiny of the rapidly growing aged care sector will continue. Whether this is fair is another question.

The aged care sector has and will continue to undergo significant reform. The two key themes are consumer choice and increasing focus on consumer contribution to care.

Financial viability remains a challenge and for some services, such as rural and remote services and services supporting people who are marginalized the only option will be government supplements and possibly philanthropic support.

However astute mainstream providers will be increasingly looking to consumers to increase their revenue base and to compensate for changes to government funding.

Over the 18 months since July 2014 providers looked to maximize their accommodation pricing. The industry has received a …

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