The new Program is set to hit providers’ cash flows hard from 1 July 2025 – you need to prepare your systems now for this new world.
In the past, operators have been able to rely on Package management fees to cover their costs even if they lost money on service delivery.
This system is no more – it is now ‘no service, no cash in’.
Support at Home will see the sector shift to an activity-based funding model, where payment is tied to services delivered, not fixed management fees.
With the 15% Package management fee gone, providers must replace these funds with higher overheads and new services.
Operators need to be efficient – and make money on every service visit. This will require real-time visibility into your profitability visit by visit, not just a final statement at the end of the month.
New quarterly budgets will also require careful management to ensure operators and their clients are maximising their funding.
Increased consumer contributions for new customers will force providers into becoming ‘debt collectors’ – seeking payment for unpaid invoices directly from their clients.
It’s a world in which only efficient providers will be able to survive – and that means having the right systems in place now.
Digital systems should already be the backbone of home care operations – but that is not the case across the sector.
Around 60% of providers report their systems aren’t meeting current or future needs, according to Jennene Buckley, founder of aged care and digital strategists Enkindle Consulting.
Many operators report that they are either working with their current vendor to improve functionality or planning for a replacement.
What should operators be looking for then in a new system?
Generally, providers should invest in a modern Home Care Client Management System (CMS) that will assist them to:
- Streamline operations (for example, provide a forms generator, workflows, smart rostering, subcontractor portal etc);
- Ensure compliance (offer effective reporting, dashboards, workflows etc); and
- Improve client and staff experience (CRM, apps, portals, and useability).
The CMS should also have the capability of integrating with their other business systems to eliminate double handling of information and the use of spreadsheets and manual processes.
“This is a big ask, but for home care providers, their home care system is the bricks and mortar of their home care operations,” said Jennene. “It needs the investment and the expertise to build it and maintain it.”
Should you outsource your system then?
In the past, many home care providers, particularly the larger operators, built their own software in-house.
Today, there is a growing market for Software as a Service (SaaS) solutions that are more cost-effective, particularly for smaller providers without tech expertise on hand.
Nathan Betteridge (pictured top and above) is the co-founder and COO of The Lookout Way, a digital care management platform for the sector.
“What we’re aiming to achieve with Lookout is to build a platform that is compliant with the standards and the funding reforms and manage core administrative tasks efficiently,” said Nathan.
“However, operators can have the flexibility of building their own solution on top of the platform so they can still have their own unique, technology-enabled offering to their customers.”
Critically, Lookout’s software now allows providers to track the profitability of individual visits and shifts – essential under the new funding model.
Their monthly subscription-based model also provides for predictable costs.
How are home care providers readying their systems for Support at Home?
Proveda, formerly Community Care Northern Beaches (CCNB), is a Sydney-based Not For Profit home care provider.
The organisation is working on technology upgrades to improve system efficiencies ahead of Support at Home, particularly in customer management.
Proveda chose the Lookout Way to streamline operations across its services which include home care, disability, and mental health.
“[The new system] should have little to no impact on our customers, which is important,” said CEO Kaz Dawson.
“But behind the scenes, we will be getting much more efficiency out of our system. The change will also make requirements such as reporting to Government, billing of customers, etc. much more efficient and cost-effective for us to deliver.”
With Support at Home set to cap the cost of care management at 10%, Proveda is also looking at building efficiencies in its processes and systems.
“We’re looking at system improvements that will allow our specialist team of care coordinators to spend more time on care coordination and care management, and less time on administration,” added Kaz.
Will Artificial Intelligence (AI) play a role in the transition to Support at Home?
AI is increasingly being viewed as a way to optimise care outcomes for clients – and reduce costs for operators.
The shift to more structured data within the home care industry due to the regulatory changes under Support at Home will allow providers to leverage AI and automation for better decision-making.
“Support at Home is a catalyst for providers to embrace technology,” Nathan explained. “Once they have their data in a structured way, they can then learn from it and train AI models to improve care.”
In the future, all providers will likely be looking at using AI to enhance customer experiences and improve support, including through predictive tools to anticipate care needs based on customer history.
But Jennene warns that many providers don’t have the basic foundations in place to support greater use of AI – yet.
The message?
Invest in the expertise to review your business processes and identify your ITC requirements now.
You wouldn’t build an aged care home without an architect, engineers, or qualified builders – so why go it alone with your technology?
Operators also need to invest in resourcing their teams and upskilling staff to be able to implement new systems effectively.
Many providers don’t have dedicated project management teams, and they may need external resources to manage the transition.
Identify any gaps in your invoicing and reporting systems and ensure that your systems can be ready to claim from the various Government systems including Services Australia and My Aged Care.
Upskilling staff around the new care models and regulatory requirements is also critical.
The Minister for Aged Care, Anika Wells, has announced this week that the Government will phase in its digital changes through to 2026.
But key changes such as the new service list, services categories and registration and funding and payment changes are still expected to go live on 1 July.
With the full service list and clear guidelines on placing claims due to be released by the Department of Health and Aged Care in the coming weeks, operators need to get their skates on.
