A couple of weeks ago, we reported that the average size of the Government’s Structural Adjustment Fund grant was nearly $3.5 million.
11 aged care providers have received a grant, which is intended to support rural, regional, and remote providers exiting the market, either through transitioning to a new owner or closing down an operation.
We went back to the Department of Health and Aged Care and asked them for more detail about what those grants are intended to be used for.
A spokesperson told us that funding is provided on “a case-by-case basis” based on the provider’s financial position and the level of Government assistance required for “continuity of care for residents”.
The grant can be used to cover a range of costs, including:
- operational costs,
- business transition costs,
- surge workforce costs, and
- costs in relocating residents.
“The amount of grant funding depends on numerous factors including the size and location of the service, the level of clinical and administrative support required, and the length of time necessary to achieve an outcome,” the spokesperson said.
Structural Adjustment Fund grants will only be available until 30 June 2023. From 1 July 2023, the Market Adjustment Program (MAP) will replace the Structural Adjustment Fund for residential aged care providers needing support for orderly exits.
MAP applications, as for the Structural Adjustment Funds, will be by invitation only from the department after an assessment.
Details of the Market Adjustment Program will be available on the Government’s GrantConnect website after 1 July 2023.
