EXPLANATORY STATEMENT
Aged Care Act 1997
Determination under subsection 14-6 (1)
(ACA Ch 2 No 1/2006)
Part 2.2 of the Aged Care Act 1997 (the Act) provides for allocation of places to approved providers to receive Commonwealth subsidies for the provision of different types of aged care. Under paragraph 14-6 (1)(b) of Part 2.2 of the Act, the allocation of places to an approved provider is subject to such conditions as are determined from time to time by the Secretary of the Department of Health and Ageing in respect of “allocations of places of a specified kind that includes the allocation of places in question”.
Context of the subsection 14-6(1) determination
228 aged care places of a “specified kind” were allocated in 2003 and 2004 to nine approved providers of aged care to pilot the provision of aged care services for people with disabilities who are ageing and who are living in state or territory government funded disability supported accommodation. The kind of places specified for the pilot model were “flexible care” places within the meaning of section 49-3 of the Act for the provision of the kind of care specified in paragraph 15.24(1)(d) of the Flexible Care Subsidy Principles 1997, that is “care provided to a group of people who are in need of alternative care options”. Allocation of places for this kind of aged care enabled the provision of subsidy.
Under the pilot program, a separate determination for each of the nine approved providers set conditions for the various places. Conditions were similar for each of the providers, including provision of care as specified in a Memorandum of Understanding (in most cases made between the Commonwealth Department of Health and Ageing, relevant State authorities and the particular approved provider) and a set time limit, ranging from 24 to 36 months. Upon cessation of the individual pilots new arrangements will commence so that current care recipients are not disadvantaged. Under the new arrangements, funding will be provided for the ongoing care of those individuals who were receiving services under the pilot program as at 25 May 2006. Funding will be paid for as long as the individual continues to reside in state or territory government funded disability supported accommodation.
Commonwealth subsidy for existing allocated places in relation to this particular kind of aged care will be subject to a common set of conditions for all nine approved providers and will not be time limited.
The new conditions that will apply to existing allocated places for the provision of the kind of aged care described above are set out in Attachment 1 to the Determination entitled “Conditions of Allocation”.
Consultation
State and territory governments were involved in original consultations around the development of the pilot program as they provide accommodation support for the care recipients involved.
The Office of Regulation Review has advised that no Regulation Impact Statement is required for the Amending Principles.
The determination is a “legislative instrument” for the purpose of the Legislative Instrument Act 2003.
Details of the determination are set out in the attachment.
For allocations of places of the kind specified in the determination generally, the determination will commence on the day after it is registered. However for places allocated to the nine existing providers, the determination will take effect on cessation of the pilot programs.
NOTES ON CLAUSES
Clause 1 determines conditions for allocations of aged care places of a specified kind.
Clause 2 provides that the conditions in Attachment 1 apply to flexible care places for people with disabilities who are ageing and who are living in state or territory funded disability supported accommodation.
Clauses 3 and 4 provide that the conditions in Attachment 1 replace any conditions previously determined for allocations of this type of flexible care place, and that they apply to allocations made before or after the determination.
Clause 5 provides that the determination takes effect for existing providers of this type of flexible care on the day specified for each provider in Attachment 1. Otherwise it takes effect from the day after it is registered.
Attachment 1: Conditions of Allocation
Item A provides that these places are for individuals receiving services under the Aged Care Innovative Pool Disability Aged Care pilot program as at 25 May 2006 for as long as they live in state or territory government funded disability supported accommodation.
Item B provides that the type of care is to allow individuals to stay in state or territory government funded disability supported accommodation instead of moving to a residential aged care facility, and that services must include all necessary care beyond that provided for an individual’s original disability.
Items C and D require approved providers to demonstrate a commitment to continuous quality improvement and adequately address safety and security issues, and to take appropriate and swift remedial action in consultation with the Department if immediate and serious health and safety risks are identified.
Item E requires approved providers to inform care recipients, their families and legal representatives of the type of care including the consequences of leaving state or territory government funded disability supported accommodation.
Items F to I provide that the Department will pay approved providers a subsidy if satisfied that the required care and services are being provided, that the rate will be determined from time to time by the Minister for Ageing, that the full amount must be used for care recipients, and that details must be provided to the Department to allow payment of subsidy.
Item J provides that approved providers must participate in research in this area and provide relevant information as requested by the Department.
Item K provides for periods of authorised leave during which a care recipient can be absent from supported accommodation for which an approved provider will still receive subsidy.
Item L lists the date that the determination will come into effect for existing providers of this type of flexible aged care.