Impact analysis of alternative arrangements for allocating residential aged care places

Page last updated: 09 January 2020

Background

As part of the 2018-19 Budget More Choices for a Longer Life package, in-principle support was provided to move from the current approach of allocating residential aged care places, through the Aged Care Approvals Round (ACAR), to alternative arrangements that encourage greater consumer choice. The Budget measure responds to recommendations in the Legislated Review of Aged Care 2017 (Tune Review). The Tune Review made three recommendations in this area:

  • Recommendation 3: Discontinue the ACAR for residential care places, instead assign places directly to consumers within the residential care cap, with changes to take effect two years after announcement.
  • Recommendation 4: Announcement on ACAR discontinuation be accompanied by appropriate provisions to ensure continuing supply of residential care services in areas with limited choice and competition.
  • Recommendation 8b: In discontinuing the ACAR for residential care, review how best to ensure adequate supply and equitable access to residential respite care.

Prior to progressing to an alternative model, a detailed analysis of the potential impacts of such an arrangement on all stakeholders is to be completed. No decisions have been made about any changes to the ACAR or to any implementation or transition arrangements at this time.

Current status

The Centre for Health Economics Research and Evaluation (CHERE) at the University of Technology Sydney, in collaboration with aged care accounting and business advisory firm StewartBrown and the Department of Health, are undertaking the impact analysis. 

Consultation on alternative models—public discussion paper, jurisdictional forums and teleconferences in non-metropolitan areas—has concluded.

  • Forums were attended by almost 250 stakeholders across the country – with representation across aged care, health, finance sectors, state/territory and local governments. A summary of feedback from the forum is available on the Department's website.
  • 59 written submissions have been received. Submissions where respondents provided permission to publish can be viewed on the Consultation Hub.

Feedback from the consultation process is being considered.

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For enquiries about the impact analysis project, please email ACARImpactAnalysis@health.gov.au