Residential Aged Care Reform

Page last updated: 15 August 2018

Residential Aged Care Funding Reform

Work is underway to investigate alternative approaches to determining residential care funding that delivers more stable funding arrangements. The government has been engaging with the sector on the development of this longer-term reform. No decisions have been made on options.

Reports

To inform residential care funding reform options two separate reports have been commissioned to help inform the government and are provided below.

Alternative Aged Care Assessment, Classification Systems and Funding Models, University of Wollongong 

The department engaged the University of Wollongong to develop options and recommendations to help inform the design of future residential aged care funding models. 

Alternative Aged Care Assessment, Classification System and Funding Models Report

Review of the Aged Care Funding Instrument, Applied Aged Care Solutions

The department engaged Applied Aged Care Solutions to undertake a review of the Aged Care Funding Instrument (ACFI) and provide recommendations on potential modifications of the current tool to make it suitable for external assessment; reduce subjectivity in the assessment process and bring it in line with contemporary care practices. The Minister for Aged Care announced the release of the report on 19 October 2017.

Download or view the Review of the Aged Care Funding Instrument Report 

Consultation

Seminars were held in Sydney, Port Macquarie, Melbourne, Canberra, Adelaide, Mount Gambier, Hobart, Brisbane, Townsville and Perth  during June and July 2017 for the University of Wollongong to present on their report. These seminars formed part of the government’s consultation with the sector on options for residential aged care reform. 

Slides from the seminar: An alternative funding model for residential aged care.

A live webinar on the University’s report was held on 17 May 2017. View the webinar recording.

No decisions have been made on reform options. The Resource Utilisation and Classification Study (RUCS) will be the focus of reform work over the next 12 months and will inform Government’s consideration of all options.

The Government will continue to consult with the sector throughout the reform process.

Resource Utilisation and Classification Study

The Minister for Aged Care announced in August 2017 that the Australian Health Services Research Institute at the University of Wollongong has been engaged to undertake a Resource Utilisation and Classification Study (RUCS). The purpose of this study is to determine the characteristics of residents that drive residential care costs, and use this information to inform the government’s consideration of future reform options.

Further information can be found on the Resource Utilisation and Classification Study webpage

Enquiries

More information