Government’s $739 million aged care announcement

Posted April 13th 2010

by DPS

<p>Prime Minister, Kevin Rudd</p> — Prime Minister, Kevin Rudd

The Prime Minister has announced an aged care reform package worth $739 million over 4 years. The Government is stating that this will support, or provide, an additional 5,000 aged care places in nursing homes and community assistance.

Mr Rudd also proposes that the Commonwealth accepts responsibility for all aged care, including the Home & Community Care (HACC) Program – from July 2012. An additional $34 million will also be provided for HACC transition.

With the introduction of this reform, Government aims to enable seamless transition for people between the different levels of care. While the announcement does not specifically state whether the Commonwealth will assume responsibility for Aged Care Assessment Teams, this reform is also designed to enable more simplified and integrated assessment across all forms of care.

The issue of disaggregating HACC services for younger people with disabilities has not yet been clarified.

Other items in the package include:

$32 million to establish one stop shops throughout Australia to help older people and families access information and assessment for aged care services.
$300 million to provide more zero real interest rate loans (ZRILs) to support the development of 2,500 extra aged care places, with the repayment period extended from 12 to 22 years. In addition the loans can now be made available for places that have already been allocated but are not yet operational.
More land and fast development for residential aged care facilities.
$120 million capital funding for Multi-Purpose Services (MPS), to provide an additional 286 sub acute beds. In addition Government will make it easier to establish MPSs in larger communities.
$280 million to state governments to meet the costs of caring for long stay older patients who can’t be discharged because there is no bed or package available. The amount provided to the states will be equivalent to the average aged care subsidy.
$96 million for GPs to attend older people in residential care services, to provide an additional 105,000 visits over the four years. The payments to GPs who provide at least 140 attendances per year will be doubled from $1,500 – $3,000.
creation of primary health care organisations (PHCOs) that will have a flexible funding pool to fill gaps in these services – such as allied health – for people missing out. The PHCO nationwide network will also work with the local Hospital Network to assist with patients transition out of hospital and into aged care.
$10 million increase for the Community Care Viability Supplement for rural, regional and remote community care services. The supplement was originally established as a $19.4 million program in 2006. This increase will provide some welcome assistance to providers struggling with increasing costs, including food and transport, associated with location.
1,200 Consumer Directed Care Packages (1,000 community care packages and 200 respite packages) in which consumers will have greater control and choice about the services they receive and the way they are delivered. Many community care organisations are trialling consumer directed care service.
$3 million to improve the Complaints Investigation Scheme (CIS) and provide access to mediation and conciliation services. This initiative is based on the as yet unreleased independent review of the CIS which found that the scheme needed to be strengthened. Funding for the CIS will reduce caseloads to improve timeliness and thoroughness of the investigations.
$22 million on Prudential Arrangements, to assist in safeguarding residents finances which are held as bonds, to improve reporting requirements, introduce criminal penalties for the misuse of funds and put in a place a regime consistent with these changes.