Proper management of unspent funds needed for compliance and profit

Unspent funds will continue to be a key issue for home care providers.  The Department…

Having the right systems manage unspent funds is vital for your home care business

Unspent funds will continue to be a key issue for home care providers. 

The Department will want to minimise unspent funds either by recovery or reducing funding. Gaining a better understanding of your choices and having the right systems in place to manage unspent funds is vital for your home care business. Start taking the right measures to ensure you remain profitable and meet your legislative obligations.

Increased competition, pricing difficulties and lack of information on how to tailor care offerings to meet consumers’ needs and funding have contributed in some cases to providers experiencing new challenges, including the accumulation of unspent funds.

With unspent funds potentially growing at a rapid rate, it can place a financial burden on your business. If unspent funds are not managed carefully, you may end up transferring/repaying incorrect amounts, which can lead to non-compliance and sanctions. So if you haven’t already started taking some precautionary measures, it really is time to address this issue. We have compiled a list of suggestions on what you can start doing to minimise unspent funds.

Make sure you are familiar with the requirements
The Department of Health have published useful fact sheets, found here:
Unspent Home Care Amounts
Actively Managing Unspent Funds

Ensure you check the clients’ care needs against their package level
Care level categories are determined for a reason, based on the assessed needs of the consumer.  If you are not using the funds, resulting in excess unspent funds, either the consumer was incorrectly assessed or you are not delivering the correct services.  Either way, it is detrimental to the consumer, the service and your compliance.

Find out what software programs are available to assist you
Adopting an intuitive software program to handle the requirements within this area is highly recommended. Find one that is specific to the issue and regularly updated to meet legislative changes. The electronic Home Care Package [eHCP] by e-Tools Software is an affordable software application containing a Discharge Feature, purpose-designed to manage this process efficiently and correctly calculate refunds or transfer of funds.

Seek help from the experts to understand the legislation and your choices
There are professionals and consultants who are able to assist in this area. The eHCP software is developed to help you manage unspent funds; however it pays to ensure you’re across all parts of the legislation in order to deliver services that meet compliance and client needs. e-Tools has a team of consultants with over 30 years of aged care management experience, who can help you strengthen your understanding of compliance requirements and financial viability. Lorraine Poulos is another specialist in this area who consults and delivers seminars aimed at giving providers ideas on how to tailor packages to meet the diverse needs of clients.

e-Tools’ eHCP software currently supports 180 providers nationally, and can help you manage the complex tasks of CDC Home Care Packages, including

  • Calculate unspent funds automatically
  • Handle the transfer/discharge/refund process of unspent funds
  • Generate compliant home care agreements
  • Produce monthly consumer statements
  • Maintain consumer package budget
  • Maintain consumer care plans
  • Maintain consumer service appointments
  • Generate reports for Medicare reconciliation and financial performance analysis

Contact e-Tools for a free online demonstration on 03 9573 3277 or visit www.e-tools.com.au for further details on eHCP.