Many aged care providers are still waiting to be reimbursed for expenses they incurred two years ago to meet the rules imposed by the Federal Government for reducing the risk of COVID-19 infection in residential aged care.
COVID-19 Aged Care Support Program Grants were announced at the height of the pandemic and allowed aged care providers to be reimbursed for additional costs they incurred during a COVID outbreak.
According to the ABC, a total of 11,383 applications for grants have been received by the Department of Health and Aged Care.
6,018 claims are still outstanding, with a total estimated value of half a billion dollars.
In the November 2022 Budget, the total funds available for the grant were increased from $100 million to more than a billion dollars.
Expenses go back to 2021
“Unfortunately, we see that the Government has still not reimbursed expenditure from 2021/22 and 2022/23,” said Catholic Health Australia’s Director of Aged Care, Jason Kara.
“With around 70% of residential homes running at a loss, aged care providers cannot continue to be left out of pocket for COVID-related expenses.”
According to a statement from Catholic Health Australia:
- Calvary Health Care has submitted around $55 million worth of COVID grant claims with only $5 million paid out;
- Southern Cross Care (SA, NT & VIC) has claimed just over $6 million with only $230,000 paid out;
- Southern Cross Care (NSW & ACT) has claimed $6 million with $2.2 million outstanding;
- Southern Cross Care (Western Australia) has claimed $3.946 million with zero paid out;
- Southern Cross Care (Tasmania) has claimed $1.23 million with zero paid out;
- MercyCare in Western Australia has submitted $1.55 million in claims with only $55,000 paid out; and
- Southern Cross Care (Queensland) has had all 2021/22 claims paid but has $600,000 outstanding from 2022/23.
In a May ASX statement, Estia Health noted $21 million in outstanding COVID grant claims, with $8.8 million dating from the 2021/22 financial year.
The SOURCE: The half a billion dollars in unpaid grants is half a billion dollars that providers have had to cover themselves. How are they doing it?
