As we reported here, the listed provider lodged the claim in April last year to continue charging its residents a daily refurbishment fee after the Department of Health banned ‘capital refurbishment fees’ in September 2016.
Regis had argued that the Act allowed for the Asset Replacement Charge (ARC) to “to enhance care recipients’ choice and to encourage diverse and high quality aged care services that are responsive to individual needs and preferences.”
But the Judge for the case dismissed their argument, saying the Act itself encourages, and requires, informed choices.
“The imposition of a fee for modifications and improvements to a facility in the future, that is not intended to benefit the person who pays the fee, enhances only the financial standing and asset base of the approved provider, and is financially detrimental to the care recipient,” he wrote.
Regis had continued to charge the fee, introduced on May 1, 2016, pending the Court’s decision.
The ARC fee (between $16.69 and $17.98) is charged to residents for a maximum of 30 months – around $15,000 – which is not payable until the “permanent discharge” of a resident. If residents paid a RAD, the amount was then deducted from the RAD. “Supported residents” or “low-means care recipients” are also not currently charged the fee.
Regis has now released a statement saying it will “consider its appeal rights and actions necessary to comply with the declaration.”
Regis’ desire for the additional fee goes to the discussion of the freedom of operators to generate additional cash in residential aged care – to have some control of their destiny plus increase investment in new product.
How will Australians learn that they will have to increasingly pay for care if the Government keeps the lid firmly on new forms of ‘user pays’?
Regis also said there would be no impact on its NPAT and EBITDA for FY18.
