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This report details the findings of an independent impact analysis that examined 2 alternative models for allocating residential aged care places. It considered associated benefits, risks and complexities for stakeholders, along with key implementation issues.
The 2 alternative allocation models examined were:
- Improve the Aged Care Approvals Round and places management arrangements.
- Assign the place directly to the consumer, rather than to providers.
The impact analysis concluded:
- The current arrangements do not provide a consumer-driven market.
- Improving the ACAR and places management arrangements would provide only modest benefits for consumers and providers. Challenges associated with allocations to providers and limiting the number of residential (and residential respite) care places would remain.
- Removing the current limits on the number of residential (and residential respite) care places and assigning these places directly to consumers could better achieve a more consumer-driven market.
- Risks and challenges associated with major structural change can be reduced with appropriate sequencing of related reforms.