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Aged Care Reform Update

Update on the progress of the implementation of the Living Longer Living Better aged care reform package.

PDF printable version of Aged Care Reform Update (PDF 30 KB)

Dear Aged Care Stakeholder,

Please find attached the first edition of the Aged Care Reform Update, providing regular updates on the progress of the implementation of the Living Longer Living Better aged care reform package.

Additionally the governance framework for the delivery of aged care reform is also attached.

If you have any queries on the Living Longer Living Better aged care reform package, please call 1800 900 554.

Ageing and Aged Care Division
Department of Health and Ageing

Living Longer. Living Better. Aged Care Reform Update

Latest News

Welcome to the first edition of the Aged Care Reform Update. This newsletter will provide regular updates from the Department of Health and Ageing on the progress of the implementation of the Living Longer, Living Better aged care reform package.

The Minister for Mental Health and Ageing, the Hon Mark Butler MP, is actively engaging with stakeholder groups and consumers on the aged care reform package. Minister Butler has met with a number of peak industry and consumer representatives to discuss the reforms.

Aged Care Funding Instrument

Minister Butler has met on a number of occasions with representatives from the sector, including providers, peak bodies, financiers and consumers to explain the modifications to the Aged Care Funding Instrument, discuss different ways of effecting these changes and to listen to concerns. The changes to the tool are intended to bring future growth of aged care subsidies back to historic rates of between 2% to 3% above indexation. This return to trend growth was expected to happen after the first few years of more substantial growth immediately following the introduction of the ACFI. Minister Butler has asked the Department to form a new consultative group to meet monthly to monitor the impact of these changes. The group will include providers, consumers and clinicians to monitor the impact of changes and will also assist in developing options for improving evidence requirements within the ACFI. Industry and consumers will be kept informed about any decisions that will be made in regards to the ACFI and any other key milestones within the Living Longer Living Better aged care reform package.

Aged Care Financing Authority

Views and comments have also been sought, through consultations that the Minister and the Department have had with representatives of providers, consumers and financiers, on how the new Aged Care Financing Authority (ACFA) will function. A draft Interim Operating Framework has been developed and is currently the subject of consultation. The final Interim Operating Framework will be released in coming weeks and the ACFA Chair will also be appointed by 30 June 2012. The ACFA will help set aged care prices and financing arrangements without adding unnecessary new layers of administration. The ACFA will have an independent Chair and membership drawn from those with expertise ranging from the delivery of aged care, the aged care workforce, and the needs of consumers.

Aged Care Reform Implementation Council

From 1 July 2012, the Aged Care Reform Implementation Council will oversee delivery of the aged care reform package and will provide independent advice to Minister Butler and the Department on the implementation of the aged care reforms. On 19 June 2012, Minister Butler announced the appointment of Professor Peter Shergold AC, as the Chair of the Council. Professor Shergold brings a wealth of knowledge and experience, and the Department looks forward to working with him in this role. The appointment of other Council members will be finalised by 30 June 2012.

Aged Care Strategic Workforce Advisory Group

The Department is pleased to report the appointment of Commissioner Anne Gooley from Fair Work Australia as the Chair of the Aged Care Strategic Workforce Advisory Group (SWAG). The SWAG will develop the aged care workforce Compact, which will be a tripartite agreement between the Government, unions, and aged care providers to implement a range of initiatives to address the workforce issues confronting the sector. From 1 July 2013, funding will be available for those aged care providers that have enterprise agreements in place consistent with the Compact. The first meeting of the SWAG was held on the 18 June 2012.

Consumer Directed Care

There are also developments relating to Consumer Directed Care (CDC). CDC has been piloted since mid-2010 and is about giving people greater choice and control in the way that their care is delivered. The evaluation of the pilot is available on the Department’s website. The pilot has worked well and will now be brought into mainstream Home Care packages. From 1 July 2012, the 1,000 existing CDC pilot places will be converted to mainstream Home Care packages and funding for CDC Respite places will be continued until 30 June 2013. From 1 July 2013, all new Home Care packages allocated to aged care providers will need to be offered to care recipients on a CDC basis. The Department will be consulting with interested parties about the best way to introduce CDC into future Home Care packages.

New Website

The Department recognises the importance of keeping everyone regularly informed on the progress of aged care reform. In addition to this new regular newsletter, the Department is also developing a Living Longer, Living Better website where people will be able to keep informed on the progress and implementation of aged care reform and how it will affect them.

Subscription

There will be opportunity to subscribe to further editions of this newsletter to keep you informed on the progress and implementation of the Living Longer, Living Better aged care reform package. Further information will be outlined in future editions of this newsletter.