ACFI report has some surprises
The review of the first 33,000 claims shows some gains in subsidies but an industry leader has warned that the situation is still tight.
The much anticipated report on the first 33,000 Aged Care Funding Instrument (ACFI) shows that initial subsidies have exceeded estimates from the national trial.
According to the Access Economics report, the average subsidy rate for existing residents who have been re-appraised under the new tool is $95.61 – up from an average of $89.23 in the trial period.
It is also slightly higher than comparable Resident Classification Scale (RCS) rates for the same residents.
The main reason behind the shift is that the proportion of existing residents with high needs under the ‘Activities of Daily Living’ (ADL) and ‘Behaviour’ domains has been higher than expected.
At this stage, it is unclear whether this is because the trial sample was not representative of the general residential aged care population or because the ‘mapping’ from the (RCS) to the ACFI was conducted differently during the trial.
Surprisingly, there is a smaller proportion of residents with high needs for ‘Complex Health Care’ than in the trial period, but this does not seem to have had a significant effect on subsidy rates.
The Minister for Ageing, Justine Elliot said the results were positive news for the sector.
“Access Economics’ analysis shows that on average, when fully implemented, the new Aged Care Funding Instrument will increase funding to the residential aged care sector by about 2.9 per cent in real terms,” she said in a statement.
But Aged and Community Services Australia (ACSA) has called for caution in interpreting the results.
“Unless the Government takes steps to link its funding to the costs of providing care, these gains will not only be wiped out, they will be reversed,” said ACSA CEO, Greg Mundy
“With inflation running at over 4 per cent and health sector wages increasing at a rapid rate, no-one can afford to be complacent about the financial state of aged care.”
Mr Mundy also criticised the phased introduction of ACFI payments, which means full subsidies will not be available until 2011.
The Minister acknowledged some of the industry’s concerns about the new instrument and reiterated the Rudd Government’s commitment to a full review in September next year.
“Some homes will need extra assistance to adapt their business practices to the new funding system,” Mrs Elliot.
“It is expected that smaller homes, including those located in rural and remote areas, or that cater for aged care residents from specific cultural or community groups, will be most likely to seek assistance.”
