The Independent Health and Aged Care Pricing Authority (IHACPA) has refused zero applications from residential aged care providers to charge RADS in excess of $550,000 since it took over the responsibility from the Aged Care Pricing Commissioner on 12 August 2022.
"From 1 July 2022 to 30 June 2023, 100% of applications to charge RADs above the Minister’s maximum amount of $550,000 were approved," a statement from IHACPA to The Weekly SOURCE stated.
From 12 August 2022 to 30 June 2023, IHACPA approved 10,198 rooms to charge RADs over the maximum amount - the highest room price approved this financial year was $3,009,949.
IHACPA told The Weekly SOURCE it approved applications within 60 days, and currently has 36 applications under consideration.
Dan Aitchison, Palm Lake Care CEO, which operates residential aged care within its land lease communities, told The Weekly SOURCE the process of gaining approval is "complex" and there is significant data required.
They have received approval to charge RADs in excess of $550,000 at six of their seven residential aged care sites.
"We use a lot of evidence around our home sales and the co-located resorts and we use that as an evidence base," Dan said.
"You've got to justify the square meterage and the offerings you're providing. We've got a good template now that we work through. And the team's quite drilled in it.".
The highest RAD Palm Lake Care has had approved is $1.1 million. Approvals allow for indexation every twelve months for four years, which Palm Lake Care now factors into its pricing on the anniversary date the approvals were received.
