The Department of Health and Aged Care has released the findings of KPMG's $390,000 consultation on proposed changes to the Star Ratings system.
In January 2024, a study by Dr Rodney Jilek, Managing Director of dementia care provider Community Home Australia, titled 'The Failure of the Aged Care Star Rating System - A Discussion Paper', showed that non-compliant aged care homes were being granted four star ratings.
Managing Director, Community Home Australia
The following month, consultants Allen + Clarke were awarded a $580,000 Government contract to assess the Star Ratings and make recommendations for improvements.
However, complaints about Star Ratings have continued within the sector. In July 2024, the peak body for aged care providers Ageing Australia found "significant limitations" in Star Ratings, and in November, Commonwealth Ombudsman Iain Anderson said Star Ratings are "not sufficiently meaningful" to help people make informed decisions about aged care services.
Allen + Clarke handed down their findings, and in November 2024, KPMG was awarded the contract to conduct consultations on their proposed changes.
After consultations with 271 individuals, including through written submissions, surveys, workshops, and virtual and face-to-face consultations, KPMG made several findings, including:
- stakeholders surveyed supported the proposal that if a provider is issued with regulatory notices for significant failures or systemic patterns of non-compliance, then the Compliance ratings for all the provider's aged care homes should be impacted;
- stakeholders agreed regulatory notices and notices in relation to financial and prudential non-compliance should impact the Compliance rating;
- stakeholders generally agreed with capping of the Staffing rating where homes don’t meet both overall and RN care minute targets;
- there was strong stakeholder support for incorporating the 24/7 register nurse requirement into the Staffing rating;
- most stakeholders supported the proposal to introduce half stars; and
- stakeholders supported the display of information about the use of environmental restraint.
Findings from the consultation will be used to support future changes to the Star Ratings system, the report said.
"Useless"
This week, Rodney told The SOURCE, "The review hasn't really identified anything that we didn't already know for some time now and while it offers some worthwhile recommendations, the entire document is useless unless the Minister actually directs change to be implemented.
"The proof will be in the pudding ... will there actually be a demonstrable change that makes the system fit for purpose and transparent or will it continue to be a smokescreen that hides and protects poor providers and misleads the general public?
"One also has to question the motive to once again commission a multinational consulting firm with a clear conflict of interest at an extraordinary cost to taxpayers to deliver a report. Very few consulting firms are going to deliver a scathing report when billions of future government contracts are at risk," Rodney said.
Costing taxpayers millions
Star Ratings were a recommendation of the Royal Commission into Aged Care Quality and Safety to create a simple and transparent way to compare the quality of aged care homes.
The current system was introduced by the Labor Government in December 2022, but has been plagued with problems, costing taxpayers millions.
According to a search of Austender, the Government's tender website, more than $13 million has now been spent on contracts related to the Star Rating system to date, including:
- $5.7 million contract with Accenture in 2022 for "development of Star Ratings";
- an $820,000 contract with PriceWaterHouseCoopers Consulting for a "Star Ratings communication campaign";
- $2.2 million with the University of Queensland for "development of Star Ratings for residential aged care"
- Ogilvy Australia was awarded a $657,000 contract to develop an advertising campaign to promote the Star Ratings
- a $2.6 million contract to Mediabrands for star ratings media placements.
- the $580,000 Allen + Clarke contract, and
- PWC's $390,000 contract
You can read the KPMG report here.