Proposed aged care funding model summarised

Report and consultations open

On Friday 15 March the Department of Health released a report on the Resource Utilisation and Classification Study (RUCS) which was undertaken by The Australian Health Services Research Institute (AHSRI) at the University of Wollongong in December 2018[1]. The purpose of the study was to determine the characteristics of residents that drive residential care costs, and use this information to inform the government’s consideration of future reform options. It proposes a new Australian National Aged Care Classification (AN-ACC).

The department is now seeking targeted feedback on proposed residential aged care funding reform options. Consultation on the proposed funding model closes 31 May 2019. To view or download the consultation paper or provide a submission to this go to the department’s consultation hub.

Ideal provides a high level summary of the intentions and recommendations.

In considering the results and recommendations included in “Report Six: AN‐ACC: A national classification and funding model for residential aged care: synthesis and consolidated recommendations”, it is necessary to distinguish between three key ideas:


The cost of care for people …

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Show me the $ – Seven things providers should be doing right now!

Residential aged care providers are faced with wafer thin and diminishing margins; and in some cases losses.

Every facility must maximise each revenue opportunity and avoid revenue leakage to be sustainable. Diligent ongoing scrutiny, accessing independent specialist advice and ensuring staff have the relevant knowledge and skill-base is mandatory for your business to survive and succeed.

Make sure you leverage expertise from all levels of the business and to look at each facility in its own right to achieve optimal revenue outcome.

Seven things providers should be doing right now!

Have an independent accommodation market appraisal done

There is a market for everyone; you just need to find your niche. An independent market appraisal will determine optimal accommodation price for your service offering in its market.

Accommodation is often undervalued and under-priced. Validate the accommodation offering and identify the appropriate price point in the market. Seek opportunities to increase the value of the accommodation.

Use external independent expertise to do this and update this quarterly, or six-monthly at a minimum.

Identify your optimal financial profile for resident mix

Based …

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