Since 1 October 2023, the AN-ACC funding mix has left high-acuity care costs underfunded, according to an aged care business consultant. Providers we have spoken say allied health, lifestyle, GP visits and dementia care lack sufficient Government funding.
The funding shortfalls could lead some providers to favour some residents over others – making it difficult for some older Australians, particularly those with high-care requirements, to find the care they need.
Steven Hughes, an aged care consultant who worked as a Business Performance Manager with ASX-listed aged care provider Regis Aged Care for 11 years, said the margin difference between a Class 2 (lowest care) resident and Class 13 (highest care) resident is only $8.50 per resident per day.
The “slim” difference is not enough to cover the "financial burden” of caring for higher acuity residents, such as higher allied health, pharmacy, and continence expenses, Steven says.
The funding “anomaly” is “relatively new”, says Steven.
“In the Pre-October 2023 funding structure, a Class 2 and Class 13 resident had a margin variance of $62.80.”
Lower acuity residents are “comparatively more profitable”, Steven said – which could discourage some providers from accepting higher acuity residents.
AN-ACC funding less than subacute hospital care
"Maximum AN-ACC funding is still less than funding for subacute care, which most closely resembles the care needs of high acuity residents”, Stephen Muggleton (right), Group CEO of Bolton Clarke, told The SOURCE.
"We need time to implement the care minute targets and let models of care evolve before considering changes to AN-ACC,” Stephen said.
But he added that aged care funding should cover allied health, lifestyle, and GP visits.
Bolton Clarke does not limit the admission of residents with higher care needs, Stephen said, but it does assess every potential resident before admission "to ensure that our home is the right environment for the resident and that our teams have the skills and knowledge to meet their individual needs”.
Rachel Argaman, CEO of Opal HealthCare, told The SOURCE, high-level care requires aged care homes to employ a sufficient number of highly skilled staff.
"Most residents move into a residential aged care community because they require 24-hour care. This level of support can only be provided by qualified nurses and carers, as well as lifestyle, wellbeing, catering and hospitality services team members who have received specific training."
