Alternate funding model needed for home care, says report
There needs to be an urgent overhaul of the home care funding model so that more money isn’t wasted, says an industry expert.
There needs to be an overhaul of the home care funding model to prevent unspent money going to waste, says an industry expert.
The latest Aged Care Financial Performance Survey report shows an increase in unspent funds to now average $11,693 for every home care recipient. “That money is, in a sense, going to waste,” Grant Corderoy, senior partner at StewartBrown, told Community Care Review.
Accountants at StewartBrown processed data from 76,770 home care packages accessed during the first three months of the 2022-23 financial year. They found the home care sector was continuing to experience a “significantly declining financial performance” while exhibiting “significant operating issues”. Among the issues, home care recipients are still receiving more funding than they require.
While they note that the Labor Government has shown a “strong commitment” to remodelling the current home care program, more change is needed, say the report’s authors, including an “alternate home care funding model.”
Funding reform was needed “so that consumers are getting funded to the level they need, and that they’re not getting over-funded,” said Mr Corderoy. “That will allow funding for other consumers who don’t have access to [home care] packages.”
“Staffing remains the most crucial concern.”
However, the biggest home care issue that needs to be addressed, say the report’s authors, is the ongoing workforce crisis. “Staffing remains the most crucial concern and this – coupled with the current complicated regulatory environment – has seen the financial performance declining.”
Staff shortages not only impact the delivery of quality of care, but they also affect a provider’s bottom line, Mr Corderoy told CCR. “They have to pay agency fees, which is a higher cost, or significantly more overtime.”
As the report shows, the current home care operating surplus stands at $3.56 per client a day, down from $4.90 per client per day in September 2021.
“This is not an adequate return based on the investment required and business risk to provide essential services to the elderly in a domestic home setting,” say the report’s authors.
To lift the home care operating surplus, the report’s authors say there needs to be a “greater level of consumer co-contribution in funding aged care.” Mr Corderoy agrees, especially from “those consumers that can afford to pay.”
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I agree there needs to be reform to the current HCP program, but I am always concerned when there is a recommendation for a greater level of consumer co-contribution in funding aged care. In my opinion this can often negatively affect people who are considered to be middle class.
In my experience providing people with a low level of support, for example. 2-3 hours a week can prevent situations of crisis occurring. In my opinion this should be offered to anyone who wants it. If this support includes case management and is provided by an experienced provider there may be many people who do not require long term complex care options.