Early returns for new aged care funding – the ACFI–show: better care for residents; more funding for providers and less red tape
Leading aged care providers are reporting that the Federal Government’s new aged care funding model is delivering better care as well as reducing red tape.
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2 June 2008
Leading aged care providers are reporting that the Federal Government’s new aged care funding model is delivering better care as well as reducing red tape.
(The new funding model – known as the Aged Care Funding Instrument (ACFI) –replaced the Resident Classification Scheme on March 20 this year.)
In addition, several providers, including large commercial and not-for-profit mission-based providers, have confirmed that on average, their preliminary overall returns under the ACFI have been higher than under the pre-March 20 funding model.
This is in line with the intent of the new arrangements which was to provide increased funding for residents, with the greatest care needs such as high care and dementia.
The maximum care subsidy payments have increased from $125 a day to $135 a day and will increase each year until they reach $160 a day by 2011.
As at May 26, 2008, 14,478 ACFI appraisals had been submitted to Medicare Australia.
Earlier advice from Access Economics to the Department of Health and Ageing indicated that 20,000 ACFI appraisals would need to be submitted before any conclusive analysis can be undertaken.
“Nevertheless, it is pleasing that the initial and preliminary indications are that the new funding model is delivering better care, more funding and reduced paperwork,” the Minister for Ageing, Mrs Justine Elliot said.
Nursing staff have also welcomed the new approach taken in classifying residents for care funding. They say it is consistent with evidence-based nursing practice and better matches residents with care.
Other positive feedback on the ACFI says that it reduces the amount of paperwork that aged care services need to complete. Already more than 30 per cent of ACFI forms are being submitted electronically.
Overall the changes that the Government introduced on 20 March 2008, including the ACFI, will see an additional $1.13 billion flow into the aged care sector over four years.
The Australian Government has already indicated that it will take advice and monitor the implementation of the new funding model for aged care through the ACFI Reference Group – which was set up by the previous government.
The Australian Government has reiterated its earlier commitment to review the ACFI in 18 months.
Mrs Elliot said the Australian Government is committed to the long-term viability of Australia’s aged care sector and the protection of the nation’s frail and elderly.
“The Federal Government is building a modern Australia capable of meeting the challenges of the 21st century,” Mrs Elliot said.
”Caring for our ageing population is one of the major challenges facing our nation this century - and as a Government - we take that responsibility very seriously.”
Over the next four years, funding for aged and community care will reach record levels of more than $40 billion -- with $28.6 billion of that on residential aged care alone.
”No government in Australian history has spent more on aged care and community care than this one. We are proud of our plans for aged and community care,” Mrs Elliot said.
”This is about planning for Australia’s future and the challenges of the 21st century.
“We want to ensure that older Australians can live independent lives and age in their own homes, but also have the option to enter aged care homes if they need to,” Mrs Elliot said.
There are 2,870 aged care facilities in Australia receiving government subsidies and they provide about 170,000 aged care beds.
For more information, contact Mrs Elliot's office on (02) 6277 7280
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