The University of Wollongong released a study on 15 March 2019 which proposed a new and improved residential aged care funding model, as commissioned by the Department of Health. The study identifies and measures the drivers of resource utilisation in residential aged care, for the purpose of developing a new funding model to be considered by the Government. Ultimately, the goal is to provide greater financial stability within the residential aged care sector.
The proposed funding model is similar to the activity based funding system which is already in place nationally. However, the proposal includes an additional two main components. The first is a ‘fixed care’ payment, which would cover the costs of care which all residents receive equally. The second is a variable payment, intended to cover the costs of individualised care for residents.
There is a call for submissions which seeks feedback from the residential aged care sector and broader community on the proposed funding model, which closes 31 May 2019. Submissions on the new proposal for funding can be made here.
To read more, click here. Access the reports from the study here.