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.​