Aged Care Act 1997 - Determination under subsection 14-6 (1) (ACA Ch. 2 No. 1/2006)

Administered by Department of Health, Disability and Ageing

Legislation au F2006L02449 Not in force Legislative Instrument

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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.

 

 

Overview

The Aged Care Act 1997 was enacted to provide a legislative framework for the allocation of places to approved providers to receive Commonwealth subsidies for the provision of aged care services. The Act was designed to address the gap in ensuring adequate and appropriate aged care services for the elderly and disabled populations, particularly those in need of alternative care options. The determination under subsection 14-6 (1) of the Act, issued by the Secretary of the Department of Health and Ageing, sets specific conditions for the allocation of 228 aged care places, initially piloted in 2003 and 2004, to nine approved providers. This pilot aimed to test the provision of flexible care for people with disabilities who are ageing and living in state or territory government funded disability supported accommodation. The policy objective is to ensure that care recipients under this pilot program are not disadvantaged when the pilot ends, with funding continuing for those individuals who were receiving services as at 25 May 2006, provided they continue to reside in supported accommodation. The new conditions, detailed in Attachment 1, establish a common set of terms for all nine providers, ensuring consistency and continuity of care.

Scope and Application

The Aged Care Act 1997 Determination under subsection 14-6 (1) applies to the allocation of 228 aged care places of a specified kind, known as "flexible care" places, allocated in 2003 and 2004 to nine approved providers for a pilot program aimed at providing aged care services to people with disabilities who are ageing and living in state or territory government funded disability supported accommodation. This legislation operates at the Commonwealth level, and its application is limited to these particular placements and the nine approved providers involved in the pilot program. The new conditions set out in Attachment 1 of the Determination, which include requirements for continuous quality improvement, safety and security, and communication with care recipients and their families, will replace any previously determined conditions for these placements and apply regardless of when the placements were made. The new conditions will take effect on the cessation of the pilot programs for existing providers and from the day after the Determination is registered for new allocations. These conditions extend the application of the Act by specifying the requirements for the approved providers to ensure the provision of necessary care and services under the pilot program.

Key Provisions

The primary provisions of the Aged Care Act 1997 Determination under subsection 14-6 (1) (ACA Ch 2 No 1/2006) revolve around the conditions governing the allocation of aged care places to approved providers, particularly for the provision of flexible care services to people with disabilities who are ageing and living in state or territory government funded disability supported accommodation (Clauses 1 and 2). This determination establishes that these places are intended for individuals receiving services under the Aged Care Innovative Pool Disability Aged Care pilot program as at 25 May 2006, and that care must allow these individuals to remain in their current accommodation rather than moving to a residential aged care facility (Item A and Item B). The Act imposes several obligations on the approved providers, including demonstrating a commitment to continuous quality improvement, addressing safety and security issues, and taking appropriate and swift remedial action in consultation with the Department if immediate and serious health and safety risks are identified (Items C and D). Providers are also required to inform care recipients, their families and legal representatives of the type of care and the consequences of leaving their current accommodation (Item E). Furthermore, providers must participate in relevant research and provide requested information to the Department (Item J). Breaching the conditions set forth in the determination can result in significant consequences. While specific offences and penalties are not detailed in the explanatory statement, the Act implies that failure to comply with the conditions governing the provision of care, quality improvement commitments, safety measures, and information disclosure could lead to the cessation of subsidies or other penalties as determined by the Department of Health and Ageing. Additionally, not participating in required research or not providing requested information could further jeopardise the provider's eligibility for subsidies and standing as an approved provider. The severity of penalties would depend on the nature and extent of the breach, with potential outcomes including financial penalties, suspension of subsidies, or revocation of provider status.

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Disability Law
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