Home > For Health Professionals > Aged care > Forms

Forms

Exchange of Care Type Guidelines for Approved Providers

Information and advice about the parameters within which the Department will consider exchange of care type proposals from approved providers.

You may download this document in PDF format:

PDF printable version of the Exchange of Care Type Guidelines for Approved Providers (PDF 51 KB)

1. Purpose of this document

The purpose of this document is to provide advice about the parameters within which the Department will consider exchange of care type proposals from approved providers, and to provide specific information which is set out in the Aged Care Act 1997 (the Act), that will need to be included in any application lodged by an approved provider to exchange care type.

2. Background

Until 2003 exchange of care type was undertaken as part of the Aged Care Approvals Rounds (ACARs). This process was not continued in 2004 because of the level of interest by providers, and because of the diminution this caused in the growth in the number of places.

3. Current Situation

The Department will consider applications made by providers to exchange aged care places on a case by case basis. Exchange of care type is only expected to be a minor process and applications will only be considered where they improve access to care and benefit care recipients.

This means that the number able to be exchanged by an approved provider will be marginal and is highly dependent on the planning objectives of the aged care planning region, including the number of places made available in the current financial year, and the effect on any indicative releases of places.

State and Territory Offices of the Department of Health and Ageing will have primary responsibility for assessment and administration of exchange of care type proposals and all proposals should be sent to the relevant State or Territory Office in the first instance. All proposals will be approved or rejected by the Central Office of the Department.

4. Definition and applicable legislation

Exchange of care type refers to mechanisms through which one of the three types of aged care (residential, community, flexible) under the Act may be exchanged for another type, with the approval of the Secretary or her delegate.

An exchange of care type involves relinquishing places under section 18-2 of the Act and making a new allocation of aged care places of a different type, under section 14-1 of the Act. The places that can be reallocated are limited to the number of places relinquished and the State or Territory in which the places have been relinquished.

The types of care that can be exchanged are residential; community and flexible – but flexible will only apply to Extended Aged Care at Home places and if appropriate, places for Multi-Purpose Services. It will not at this point in time be used for other flexible aged care places such as EACH Dementia, transition care or innovative pool places. Places funded through the National Aboriginal and Torres Strait Islander Aged Care strategy are also excluded as they are not issued under the Act.

Top of Page

5. Decision making parameters

Decisions about exchange of care type must be consistent with the objects of the Act (as set out in section 2-1 of the Act) and follow an established legislative process. Accordingly, the Department will decide the outcome of applications to exchange care type within the following parameters:

• the provider must have an approval to deliver the type of care proposed
• the needs of care recipients and continuity of care are core considerations
• the outcome of the proposal will best meet the needs of the aged care community in the relevant planning regions
• the provider must have a commitment to the provision of the proposed care type and a demonstrated capacity to operate an effective service of the care type
• only places that have taken effect can be exchanged, that is, provisional allocations cannot be exchanged
• proposals for temporary exchange of care type cannot be considered, for example, proposals to exchange care type temporarily while undertaking construction or redevelopment, will not be considered
• exchange of care type can not be used to facilitate bringing provisionally allocated places on line
• exchange of care type is on a one-for-one basis and places must be re-allocated within the same State or Territory
• the number of places to be exchanged by an approved provider at any one time will be marginal, and is highly dependent on the planning objectives of the aged care planning region, including the number of places made available in the current financial year, and the effect on any indicative releases of places. Detail about the availability of places in the current and indicative years is located the Regional Distribution of Aged Care Places, made available as part of each year’s Aged Care Approvals Round.
• exchange of care type is not to be used for emergency allocations
• each case will be assessed individually on its merits, that is, not competitively with any other applicants

Exchange of care type proposals may have implications for providers of residential aged care services that have received Australian Government funding for capital works for their residential facility. If this is applicable, approved providers should read Recovery of Aged Care Capital Funding – The Guidelines, available on the Department’s internet site at http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-finance-capfund.htm. Again, the Department will assess each case on its merits, the broad principle being that the Australian Government should recover its interest.

6. Detailed assessment of proposals

In assessing proposals, the Secretary will consider the matters outlined above as well as the requirements of sections 18-2 to 18-4 and 14-1 and 14-2 of the Act.

Section 18-3 of the Act requires the Secretary to decide whether any proposals for ensuring that care needs are appropriately met for care recipients who are being provided with care in respect of places being relinquished are satisfactory. To do this, the matters within paragraphs 4.75 (for residential care) or section 4.76 (for community care) of the Allocation Principles will be taken into account.

The Act and associated Allocation Principles can be found at the following address: http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-legislat-aca1997-acaindex.htm

If the proposal is not satisfactory, the Secretary may ask the approved provider to modify the proposal within a certain timeframe. If this does not occur, the Secretary can reject the proposal.

Section 14-2 of the Act requires the Secretary to decide whether the proposed allocation of places would best meet the needs of the aged care community in the region, and lists a number of items that the Secretary must consider in assessing applications for places. The Secretary must also consider the matters set out in paragraphs 4.35 to 4.40 of the Allocation Principles. Two important criteria that will be closely assessed in relation to exchange of care type are a demonstrated need to restructure the aged care service or group of services and the ability of the service to provide an appropriate level of care relevant to the type of place.

Top of PageIn assessing each approved provider’s application to exchange care type, the Secretary will rely on:

• information provided in the application
• the requirements of the Act and Aged Care Principles
• the applicant’s records of compliance with care standards and of meeting obligations arising from the receipt of payments from the Commonwealth for providing aged care
• the relative supply of places (including announced allocation of new places and indicative figures for future allocations) in the relevant regions for both the losing and gaining care type.

The Secretary may also:

• use any other relevant information available to the Department, including information from the Complaints Resolution Scheme
• obtain information and documents from other persons or organisations, including the Aged Care Standards and Accreditation Agency and organisations able to undertake independent financial probity and credit/debt investigations
• take into account strategies that the applicant has put into place to improve compliance with Commonwealth requirements.

The Department will take approximately 60 days to assess a proposal from the date that the application is lodged by the approved provider. At any stage in the process, staff from the relevant State or Territory Office may contact the applicant to discuss the proposal.

7. Outcome of the assessment

If the exchange of care type proposal is approved by the delegate of the Secretary, the approved provider will be advised of the allocation of new places in accordance with section 14-8 of the Act, including the associated conditions of allocation.

In order that the same care needs can be targeted, the conditions attached to the original places will be considered when determining those for the new places. For example, if the original allocation was for the provision of dementia-specific residential care, any exchange to community care places could include a condition that targets dementia-specific care. Further, if a provider has made an assertion or undertaking that the Secretary has relied upon to approve the allocation of the new places, as far as practicable that assertion or undertaking will be represented as a condition of allocation.

The date of the Notice under 14-8 will be the day after, or a later date, as the date proposed for the relinquishment of places.

If the exchange of care type proposal is not approved, the approved provider will be advised of the outcome in writing, in accordance with section 14-8 of the Act. This decision is not reviewable under Division 85 of the Act. Applications for a review can be made under the Administrative Decisions (Judicial Review) Act 1977.

8. How to apply for exchange of care type

Please complete the form ‘Application to exchange care type’, available on the Department’s website at http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-exchange-care.htm This will ensure that all information required to assess a proposal to exchange care type is submitted and able to be assessed in a timely manner.

As proposals are assessed on a case by case basis, the application form may be submitted at any time to the following address:

Aged Care Branch
Department of Health and Ageing
GPO Box 9848
In the capital city of the State or Territory in which the aged care services are located
(To assist delivery, please also specify ‘Mail Drop Point 42’ if the service is located in the Australian Capital Territory)

9. Departmental Contacts

Approved providers interested in an exchange of care type are encouraged to firstly discuss their proposal with the relevant State or Territory Office of the Department. Contact numbers are as follows:

New South Wales 1800 048 998
Queensland 1800 177 099
South Australia 1800 188 098
Tasmania 1800 005 119
Victoria 1800 020 103
Western Australia 1800 198 008
Northern Territory 08 8946 3444
Australian Capital Territory 1800 020 102
Top of Page