There are subsidies for providers of ongoing services in the home support service group. These provider-based subsidies are meant to help registered providers meet the fixed costs of delivering aged care services. This helps providers be more flexible in how they manage and deliver services, depending on need.
These subsidies are referred to as care management funding in the Support at Home program manual.
[Chapter 4 – Part 2 – Division 1]
Provider-based subsidies in home or community settings only apply to the home support service group for the classification type ‘ongoing’. A provider can only be eligible for provider-based subsidy for the delivery of a service if they are eligible for person-centred subsidy on the day. This makes sure that the payment of subsidy is always tied to the delivery of services to older people.
Calculating the eligible provider-based subsidy
The method to work out the eligible subsidy amount for provider-based subsidies is similar to the general method for person-centred subsidies in the home or community setting:
- Find the service price.
- Subtract any reductions from the price.
- Calculate the final eligible subsidy amount.
Final eligible subsidy amount
Work out the price of the service delivered. This is done the same way as for person-centred subsidies, using either:
- unit price
- efficient price
- actual cost.
Subtract reductions
Subtract any reductions from the price. A reduction is an amount that can reduce how much subsidy the government pays. The same reductions can apply to the provider-based subsidy as to the person-centred subsidy:
- compensation payment reduction
- individual contribution reduction.
The Act and the Rules set out how to find these reduction amounts for the provider-based subsidy.
Subtracting reductions from the price gives the provisional subsidy amount.
Final eligible subsidy amount
The provider is eligible for the amount of provider-based subsidy worked out using this method, in relation to the older person and the delivery of the service. How much subsidy the provider actually receives depends on the provider’s available funding balance, which is explained in the process for claiming subsidies.