Heather WithamManager, Government Relations and Policy

ACSA Victoria Finance Forum23 April 2015

Outline• Aged care in Australia• Aged care expenditure• Aged care reform• RADs and DAPs• Delays in access to care• Trends: Investor sentiment increasing• The future for aged care• Upcoming ACSA work• New ACSA• Any questions?

Aged Care in AustraliaIn 2014/15…….

• over 231,500 people accessed permanent residential care• over 83,100 people accessed home care packages • over 23,500 people accessed transition care • over 775,900 people aged 65 years and over accessed HACC services

As at 30 June 2014, there were:• 192,834 residential aged care places• 66,954 home care places• 4,000 transition care places

Aged care expenditureAustralian Government expenditure for aged care increased by 5.6% in

2013-14.

This totalled $14.2 billion

• $9.8 billion on residential care subsidies ($9.2 billion in 2012-13)

• $1.3 billion on home care packages ($1.2 billion in 2012-13)

• $367.4 million on flexible care programs ($354.2 million in 2012-13)

• $1.2 billion on HACC + $539.8 million on payments to VIC and WA

• $212.3 million on National Respite for Carers Programme (NRCP)

• $38.5 million on Day Therapy Centre (DTC) Programme

Aged care reform

Issues related to aged care reform since 1 July 2014:

• Income testing in home care and means testing in residential

care

• Delays with assessment letters

• Inconsistent information from DHS & DSS

• Low take up of level 1&2 HCPs

• Ongoing problems with online Medicare claiming process

RADs and DAPsAged Care Financing Authority’s survey of aged care providers in their November 2014 Report (released January 2015) showed consumer choice of accommodation payment options for:

• RADs ranged from 41-44%

• DAPs ranged from 32-36%

• Combination RAD/DAP options ranged 23-25%

• Sample size: Approximately one third of services

RADs and DAPs

Lump sums heldThe overall pool of lump sum accommodation payments held or receivable grew by 2.3% between 30 June 2014 and 31 October 2014.

Choice of accommodation payment by ownership type

Delays in access to careConcerns over delays in access to care stem from:

• Delays in issuing means tests by DHS.

• Changes in provider admission behaviour, with more providers

requiring prospective care recipients to have completed means

test assessments before care is provided.

• Changes to consumer behaviour, with more time being given to

understanding financial implications of choices.

• Delays with ACATs in some regions

Trends: Investor sentiment increasing

The Future

• Introduction of CHSP 1 July• My Aged Care Gateway: DSS will closely monitor whether there is

RAS/ACAT influence over consumer take up of places• Next phase of reform:

o Merger of CHSP/HCP – consumers as fund holderso Quality being a baseline “safety” focus (via accreditation) and

“quality” focus based on consumer experienceo Reform of ACAR/freeing up supply – ideas neededo CDC in residential care

• Examination of alternative funding models for RRR• Aged care workforce stocktake and strategy• Information Technology

What needs to change• Providers: market leaders and innovators

• There must be greater safeguards for more vulnerable providers, especially those in Rural, Regional and Remote Australia

• Consumers and families will want more care choices

• Consolidation: A sustainable sector will mean fewer providers

Upcoming ACSA work• Submission to tax white paper “RE:Think”: NFP and tax benefit

focus (due 1 June)

• Work with DSS on RRR issues

• Await the release of the Reform of the Federation White Paper- Health and Housing – before 2016 election

• 2015/16 Budget – ACSAs Pre-Budget Submission available at: www.agedcare.org.au

• 2016: Federal Election

New ACSAACSA has made a commitment to move to a national entity so it is well positioned to meet national challenges and ensure ongoing and increased effectiveness in service delivery to its members.

Purpose

• To enable our diverse range of members to deliver quality services and support

Mission

• Strengthen the community benefit sector to enhance the health and well-being of older Australians

Values

• Community, Collaboration, Compassion, Courage

Leadership Objectives

• Influence, lobby and advocate

• Research, policy development

• Enable networking

• Foster innovation

• Build partnerships and relationships

New ACSA guiding principles• The quality of local services provided to members is our highest

priority• The transition will occur over a two-to-three-year period

following agreement at General Meetings in June 2015• Change management and communications with members and

staff is vital• The transition process will be managed and monitored to ensure

delivery of expected benefits throughout the transition period• Minimise the impact on people while not compromising the

quality of services

New ACSA guiding principles• Maintain and maximise corporate knowledge• Over the initial two-year period it is expected there will be some

redefinition of roles across the New ACSA• National work (as opposed to local) will be undertaken in the

most appropriate locations• In the medium- to long-term ACSA will seek efficiencies in

operations• Pre-transition commitments at State and National levels will be

honoured

Any questions?hwitham@agedcare.org.au