Aged Care Pricing Commissioner Annual Report 1 JULY 2013 30 JUNE 2014

AgedCarePricingCommissionerAnnualReport1JULY2013–30JUNE2014

LetterofTransmittal

OfficeOfTheAgedCarePricingCommissioner
LockedBag5,HaymarketNsw1240
Tel:1300550970

SenatortheHonMitchFifield
AssistantMinisterforSocialServices
ParliamentHouse
CanberraACT2600

DearMinister

InaccordancewithSection95B-12oftheAgedCareAct1997,IpresenttoyoutheAnnualReportoftheAgedCarePricingCommissionercoveringtheCommissioner’soperationsfortheyear1July2013to30June2014.

Yourssincerely,

KimCull
AgedCarePricingCommissioner

Contents

Letter of Transmittal

Commissioner’s Overview

Functions

1.Applications for accommodation payments

2.Applications for approval of Extra Service fees

3.Internal and external review

4.Freedom of Information requests

About the Office of The Aged Care Pricing Commissioner

5.Corporate governance

7.Budget and staffing

6.Performance

Contacts

Commissioner’sOverview

IampleasedtoprovidethefirstreportontheoperationsoftheAgedCarePricingCommissioner.

ThestatutorypositionwascreatedaspartofreformstotheAgedCareAct1997,whichprovidesatSection95BthelegislativebasisfortheappointmentandfunctionsoftheAgedCarePricingCommissioner.ThesefunctionsincludetheapprovalofproposedaccommodationpaymentsthatarehigherthanthemaximumamountdeterminedbytheMinister,theapprovalofExtraServicefees,andanyotherfunctionsconferredontheCommissionerbytheMinisterorunderCommonwealthlaw.

CertainotherstatutoryinstrumentsfurtheroutlinethefunctionsoftheCommissioner:theFeesandPaymentsPrinciples2014(No.2)andtheExtraServicePrinciples2014.

TheCommissionerisalsoaGovernmentrepresentativeontheAgedCareFinancingAuthority.

Throughexercisingthesefunctions,theCommissionercontributestoGovernmentobjectivestoincreasetheleveloftransparencyinthepricingofresidentialagedcareservices,andtoensurethatresidentsreceivequalityaccommodation,careandserviceswherehigheroradditionalpricesarepaid.

TheprincipaloperationalfocussinceassumingtheroleoftheCommissionerinOctober2013hasbeenincreatinganapplicationprocessandassessmentmethodologyleadingtodecisionsbytheCommissionerinrespectofproposedaccommodationpricesinresidentialagedcareabovethemaximumamountdeterminedbytheMinister.

InJanuary2014,theMinistermadetheAgedCare(MaximumAccommodationPaymentAmount)Determination2014,whichprovidesthatthemaximumamountthataprovidermaychargeacarerecipientwithoutapprovalfromtheCommissioneris$550,000asaRefundableAccommodationDepositoritsequivalent.

FromOctober2013,theCommissionerengagedininformalandformalconsultationwithstakeholders,withpublicconsultationontheapplicationformandapplicationguideconductedinDecember2013–January2014.Feedbackfromthispublicconsultationledtofurtherrefinementandalsofedintootherdocumentsandconsiderations,suchasanassessormanualpublishedonthewebsiteoftheCommissioner.Acommitmenttominimiseanyundueregulatoryburdenonprovidersbyseekinginformationwhereexplicitlyrelevanttotheassessmentofapplicationswhileleavingtheapplicationprocesssufficientlyopeninacomplexsectorhascharacterisedtheapproach.Asaconsequencesubstantialchangesweremadetotheinitialdraftapplicationinthecontextofreducingtheburdenandredtapeforproviders.

Inadditiontothepublicandtargetedconsultationsundertaken,theCommissionerhaspublishedthefollowingdocumentsontheCommissioner’swebsiteattoenableapplicationsforproposedaccommodationpaymentsabovethemaximumamountdeterminedbytheMinister,andtoensurethatapplicantsareawareoftheassessmentprocessandguidingconsiderations:

• ApplicationForm;
• ApplicationGuide;
• AssessorManual.

TheCommissioneralsopublishedaresponsetoissuesraisedduringthepublicconsultationonthedraftApplicationFormandApplicationGuide,andprovidesanswerstofrequentlyaskedquestionsontheCommissioner’swebsite.

Functions

1.Applicationsforaccommodationpayments

Intheperiodsincetheopeningofapplicationsfrom31January2014to30June2014inclusive,446individualapplicationsweremadefortheapprovalofpricesabovethemaximumamountdeterminedbytheMinister.

Ofthese446applicationsreceived,379wereapprovedduringthefinancialyear.Noapplicationswererefused.9applicationswerewithdrawnbyapplicants,andanumberreframed.ThisreflectsanapproachtakenbytheCommissionerinseekingtoworkwithagedcareproviderstofacilitatetheapprovalofapplicationswherepossible,toseekfurtherinformationwhererequired,ortoidentifywhereapplicationsarenotlikelytosucceedascurrentlyframed.Asanewregulatoryregimeinacontextwhereitisregardedasimportantbothforagedcarerecipientsandforindustrytounderstandtheregime,thisapproachisregardedasappropriate.

InformationprovidedtotheCommissionerforthepurposesofanapplicationforproposedaccommodationpricesinresidentialagedcareabovethemaximumamountdeterminedbytheMinisterisprotectedinformationundertheAgedCareAct1997,andisnotsharedwithanyotherpersonoragencyotherthanasrequiredbytheAgedCareAct1997.

2.ApplicationsforapprovalofExtraServicefees

TheCommissioner’sresponsibilitiesinrespectoftheapprovalofproposedExtraServicefeestookeffectfrom1July2014. AnapplicationformfortheapprovalofExtraServicefees(includingincreases)isontheCommissioner’swebsite.

3.Internalandexternalreview

DecisionsmadebytheCommissionerinrespectofproposedaccommodationpricesandExtraServicefeesarereviewabledecisionsundertheAgedCareAct1997.Intheyearto30June2014,noaffectedpersonsoughtareviewofadecisionbytheCommissioner.

4.FreedomofInformationrequests

TheCommissionerreceivedoneFreedomofInformationrequestduring2013-14.Thisrequestwassubsequentlywithdrawn.

Aboutthe Office of The Aged Care PricingCommissioner

5.Corporategovernance

TheCommissioner’sspendingofpublicmoneyisregulatedbytheFinancialManagementandAccountabilityAct1997andFinancialManagementandAccountabilityRegulations1997.SpendingmustalsocomplywiththeCommonwealthProcurementRules.

TheCommissionerexercisesexpenditurepowersunderdelegationfromtheSecretaryoftheDepartmentofSocialServicespursuanttos53oftheFinancialManagementandAccountabilityAct1997(subsequentlythePublicGovernance,PerformanceandAccountabilityAct2013).

7.Budgetandstaffing

Tomeetthevariabilityofvolumeinapplications,theCommissionerwassupportedbyupto9staffduringthe2013-14year.Thisincludedassessmentofficersandadministrativesupport.

TheCommissioner’sbudgetallocationfor2013/14was$1.1millionfora9monthperiod,whichincludedstaffsalariesandtheCommissioner’sremuneration.

6.Performance

TheprincipalmeansbywhichperformancecanbemeasuredrelatetothestatutorytimeframesformakingdecisionsonapplicationsforaccommodationpaymentsabovethemaximumamountdeterminedbytheMinister.TheFeesandPaymentsPrinciples2014(No2)providethattheAgedCarePricingCommissionermustnotifyapplicantsofadecisiontoapprove,ortorefusetoapproveandapplicationwithin60daysofreceivinganapplication.ThistimeperioddoesnotincludeanyperiodduringwhichtheCommissionerformallysoughtfurtherinformationinrespectofanapplication.AlldecisionsmadebytheCommissionerwerewithinthis60dayperiod.

Theaveragetimetakentoassessanapplicationandmakeadecisiononproposedaccommodationpriceswas30days.Thistimeperiodincludesthetimetakentoseekinformationfromapplicantswithoutrecoursetoaformalrequestforfurtherinformation.Theapproachtakeninassessments,withasmallnumberofexceptions,hasbeentoseektheinformationrequiredtocompleteanassessmentoutsidetheparametersofaformalrequest.Thisincreasestheapparenttimetakentoprocessanapplication.Wherethistimeisdiscounted,theaveragetimetakentomakeadecisiononanapplicationwas25days.

TheCommissionerwillalsoassessperformancethroughfeedbackfromaReferenceGroupofstakeholderstobeestablishedinthesecondhalfof2014.

Contacts

TheOfficeoftheAgedCarePricingCommissionercanbecontactedbyphone1300550970,,orbypostat:

OfficeoftheAgedCarePricingCommissioner
LockedBag5
HaymarketNSW1240

FurtherinformationabouttheAgedCarePricingCommissionercanbefoundontheCommissioner’swebsiteat

Aged Care Pricing Commissioner: Annual Report2013–20141