This week, we reported that StewartBrown's analysis of the Federal Government's aged care reforms showed the Hotelling Supplement may require an additional $7 per bed per day to "fully meet" the actual cost of delivering hotelling services.
The Hotelling Supplement is used to cover costs such as employing staff for services such as catering, cleaning and gardening.
We asked the Department of Health and Aged Care if there was a shortfall.
A spokesperson for the Department said the recent Australian National Aged Care Classification (AN-ACC) funding announcement included $0.9 billion for hotelling services, increasing to $1.1 billion once consumer contributions are included.
In total, additional funding of $5.8 billion over four years was announced.
"Collectively, these changes to the AN-ACC care funding model and the Hotelling supplement represent an estimated 15% increase in average funding per resident per day from $276 in 2023-24; to an estimated $318 from 1 October 2024," the spokesperson said.
"Since October 2022 Government has increased average funding per resident per day by approximately 58%.
"The operations and business activities of each provider will vary, and it is up to each provider to ensure that they utilise their funding appropriately and meet all their obligations."
The Department also responded to a question about the Independent Health and Aged Care Pricing Authority (IHACPA) basing its pricing advice on 2021-22 data.
"IHACPA provided its Residential Aged Care Pricing Advice 2024-25 based on data from the 2021-22 ACFR indexed forward with adjustments for Fair Work Commission decisions and the introduction of the hotelling supplement.
"This process is consistent with IHACPA’s methodology utilised for other areas of investigations such as the AN-ACC funding model," said the spokesperson. "IHACPA’s pricing advice is also independently quality assured to ensure that it is robust and accurate."
Despite this assurance, the spokesperson confirmed that there is potential for funding arrangements to change into the future.
"The government will continue to review funding arrangements for residential aged care and take into consideration future IHACPA advice."
