Paul Sadler - Presbyterian Aged Care
Attention:
Ms Kerrie Westcott Director, Legislation Section Transition Branch Ageing and Aged Care Division
Department of Health & Ageing
Dear Kerrie
Herewith some brief comments on behalf of Presbyterian Aged Care NSW & ACT (PAC) on the draft amendments to the Aged Care Act released in the Overview Paper.
Generally the proposed amendments seem to reflect accurately the intent of the Living Longer Living Better reforms.
Accommodation Payments
PAC believes that setting of accommodation payments should be a matter for negotiation between the aged care provider and prospective resident and the main regulatory requirement should be for fair trading and full disclosure. Involvement of the Department of Health & Ageing or the Aged Care Financing Authority in artificially controlling accommodation payment levels is, in our view, counterproductive. There is limited evidence of a substantial problem with the current accommodation bond regime that is being addressed through the proposed regulatory controls.
PAC also disagrees with the Government’s decisions to remove retention amounts and require insurance of bonds. We agree with the Aged Care Financing Authority’s conclusion that these decisions will require providers to increase the amount of accommodation payments (lump sum or periodic), but note that not all providers may be in a position to offset the loss of income via increased resident payments. We believe the Government should consider other options to insure bonds, including retaining the current government guarantee. We also believe that retention amounts should continue to be allowable, as to do otherwise could result in some residents, who would otherwise only be able to afford lower level bonds, being unable to afford the higher upfront payments.
Aged Care Funding Instrument
PAC is also concerned about the proposed strengthening of the provisions allowing the Department to suspend an approved provider from making ACFI appraisals and reappraisals (page 42 of Overview Report). Currently the Secretary’s delegate must be satisfied that false or misleading information was given in a substantial number of appraisals or reappraisals. This would be changed to providing false, misleading or inaccurate information in relation to one or more appraisals or reappraisals. There will also be the capacity to apply the suspension to individual homes, rather than the provider’s portfolio.
Use of the term ‘inaccurate’ seems to capture situations where mistakes are made in good faith, and could lead to a disproportionate response. The removal of the requirement for an impact on a substantial number of appraisals also give rise to concern that DoHA could overreact to single instances of misclaiming.
PAC is not convinced about the need for these changes, as the current validation process allows the Department to respond to inaccurate claims and to respond should there be a pattern of misclaiming occurring.
We hope these comments assist. Please contact me if you have any questions.
Regards
Paul Sadler
Chief Executive Officer
168 Chalmers Street, Surry Hills NSW 2010
PO Box 2196, Strawberry Hills NSW 2012
T: (02) 9690 9333 | F: (02) 9310 2148
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