The Department of Health and Aged Care's new approach to allocating residential aged care places, titled 'Places to People', was set to come in from 1 July 2024 alongside the new Aged Care Act. With this timeline now in doubt, MinterEllison Partner and aged care law specialist Penelope Eden has the following advice for operators seeking to build new beds now.
Until the new Aged Care Act comes into force, under the transitional arrangements, which have been in place since the conclusion of the Aged Care Approvals Rounds in 2020, new residents must undergo an Aged Care Assessment Team (ACAT) assessment and obtain approval for residential aged care. Providers will be allocated places to provide the needed care, Penelope states.
There are two processes that providers can pursue under the transitional arrangements:
Bed-ready residential care places
Providers that can provide immediate residential aged care but do not have sufficient place allocations, can complete a 'bed-ready' application. Providers have to show their current services will meet the care and service needs of prospective residents. The application process will be non-competitive and the number of places a provider can apply for is unlimited. This transitional process is open to providers that already have an allocation of places and wish to seek additional places.
Intention to undertake residential developments
Providers that intend to commence their service before the new Aged Care Act comes into effect can submit an 'intention to develop' application. This process requires the provider to provide details about their proposed service, the number of residential places required, and the anticipated timeline of their service development. Once the Department has determined the provider is bed-ready, places will become available to the provider.
The new 'People to Places' allocation system
The planned ‘Places to People’ approach to residential aged care bed allocation allocates places to the individual care recipients. New residents will still be required to undergo an ACAT assessment, however, once approved they will be automatically allocated a place. The allocation of a place will permit the resident to then choose the residential aged care provider from whom they wish to receive services, subject only to the provider's availability of beds. The chosen provider will then receive Commonwealth Government subsidies in the usual way.
The Department of Health and Aged Care has not clarified how providers allocated places under the transitional arrangements will transition to the ‘People to Places’ approach once the new Act comes into force, according to the Alert.
"We anticipate this will be addressed in the coming months and will keep you updated as the operational procedures are given more shape," the MinterEllison alert states.
Separately, the Department has confirmed it has extended the public consultation period for its guidance resources on the draft strengthened Aged Care Quality Standards, which also come into effect with the new Act, from 30 April 2024 to 19 May 2024.
Information is available here on the Department of Health and Aged Care website, including the bed-ready and intention-to-develop application forms.
