With prices set by government, providers will attract clients by  demonstrating quality of services through new quality indicators and star ratings.

Providers will get paid for the services they deliver and clients won’t accrue unspent budget funding, so there will be no wasted funds in the system.

Government subsidies will be set at fair levels by Government with no separate administration charges denying unscrupulous service providers the opportunity to rip-off vulnerable clients. ​

Fair and reasonable client contributions will be charged against individual services, so clients see what their funds are buying, while helping to meet the cost of the program.

High quality services without high administrative charges​

Service providers will be focussed on quality services for clients or risk scoring badly against quality indicators. ​

With price caps set by Government, including admin costs, there will be no excessive admin fees.​

Fair consumer contributions will be paid at an hourly rate for each service delivered, so people can see what their money is buying.

Provider Funding Element​

How it would work​

Activity based funding​

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  • Providers bill for services on a service list and can only price up to the list price set by government on advice of IHACPA.​

  • Prices include a mark-up for administrative and travel costs​

  • Services are billed against client budgets (or a flexible funding pool – see below)​

  • Invoices may be submitted monthly or more frequently to Services Australia ​

Supplementary grants by service type​

(transport, cottage & centre-based respite, meals, social support group)​

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  • Existing CHSP providers delivering these service types would receive a funding guarantee set at 80% of their current grant value​

  • If monthly activity based payments fall short of the funding guarantee, they will receive an automatic top-up payment to the guarantee.​

  • These providers will be able to plan with funding certainty while receiving full activity based payments for any service expansion for new clients.​

Supplementary grants for high cost or low volume​

  • Providers, such as those operating in rural and remote locations or with diversity groups, for whom activity based payments would be insufficient may bid for long term supplementary grant funding.​

  • Grants would be part of their ongoing funding model on 3-5 year agreements. ​

Funding pool ​

for additional temporary client services​

  • Providers will be able to deliver extra services to clients (above their budget) when they have temporary needs – eg after a fall or when a carer is away​

  • This will be paid as activity based payments billed against a flexible funding pool​

  • Each provider will have access to a flexible funding pool set at 25% of their total client budgets – eg a provider with client budgets of $100,000 could bill up to an extra $25,000 to provide extra supports​

  • Providers would determine how to allocate this fund across clients within guidelines​

  • This approach may also be used for episodic care management services.​

Consulting on alternative model in thin markets and First Nations Model​

  • The Department is consulting with First Nations providers and Elders on options for a different grant-funded delivery model based on the NATSIFACP approach in remote Australia.​

  • This would provide more flexibility to providers to adjust services over time to meet client needs, while offering more funding certainty to attract more Indigenous controlled organisations into aged care.​

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