Aged Care Funding Instrument
ACFI Monitoring Group Meeting 3 Outcomes
The third meeting of the Aged Care Funding Instrument (ACFI) Monitoring Group was held on Tuesday 23 October 2012 in Canberra.
The Monitoring Group reviewed ACFI data from July and August 2012 which showed that average ACFI subsidies in August 2012 ($134.77#) were in line with average subsidies provided in July 2012 ($134.78) and 0.6% above June 2012 ($133.96). Average subsidies for July to August 2012 ($134.78) were 5.71% above the same period last year ($127.50).
The Monitoring Group noted that, as only two months of data was available, it remained too early to draw conclusions on expected growth against the Budget. The analysis was further complicated by the higher than usual number of reappraisals in June (9,860), followed by lower than usual numbers of reappraisals in July (5,403) and August (6,083) compared to typical levels of around 7,300 per month. The Group expected to gain greater confidence in data over the coming months.
As more data builds, the Monitoring Group will continue to track ACFI expenditure against target levels in the Commonwealth Budget forward estimates. The 2012-13 Budget for aged care of $9.1 billion is $378 million* above 2011-12 expenditure. Average care subsidies are projected to grow on average by 2.7% per annum (above indexation) between 2012-13 and 2016-17. The average daily subsidy per resident for July and August for the 2011-12 financial year was $130.79.
The Group discussed the relationship between funding impacts and quality of care. It was noted that quality indicators are being developed which will assist in measuring changes in quality of care over time.
The Monitoring Group reviewed a range of data in relation to the impact on different service/provider characteristics. Noting the limitations on the data, as mentioned above, the changes to date do not appear to have had a disproportionate impact on any service/provider type. The Department noted it would continue to work on ways to identify whether there were any specific impacts on funding for people with dementia.
The Department noted that some parts of the sector appeared to have lower than average ACFI subsidy levels: smaller services, services caring for people with a history of homelessness and services located in remote areas. While not a result of the July 2012 ACFI changes, the Department agreed to raise these issues with the Aged Care Financing Authority for consideration in the context of its operating framework.
The Group discussed comments received from members on the proposed 1 February 2013 changes to the ACFI. The Department agreed it would develop a communication strategy, for consideration by the Group, to ensure any changes are communicated to the sector in a timely and effective manner.
Members were provided with an update from the latest meeting of the ACFI Technical Reference Group, held on 19 October 2012. The Monitoring Group will be provided with a report from the Technical Reference Group out-of-session.
*Updated following the finalisation of 2011-12 expenditure data.
#For the purposes of the Monitoring Group, the average daily subsidy per resident is calculated based on ACFI appraisal data and includes the Conditional Adjustment Payment. It does not take account of Resident Classification Scale saved rates or other non-typical rates.
Top of page
