EXPLANATORY STATEMENT
Aged Care (Conditions of Allocation – Extended Aged Care at Home - Dementia)
Determination 2008 (No. 1)
The Aged Care (Conditions of Allocation – Extended Aged Care at Home - Dementia) Determination 2008 (No. 1) is made by a delegate of the Secretary under subsection 14-6(1) of the Aged Care Act 1997 (the Act).
Section 14-1 of the Act allows the Secretary to allocate places, in respect of a particular type of subsidy under Chapter 3 of the Act, to approved providers to provide aged care services for a region.
Sections 14-5 and 14-6 of the Act allow the Secretary to specify or determine conditions to which an allocation of places is subject.
Conditions specified under section 14-5 apply to a particular allocation, and therefore only the relevant approved provider, and are specified by a delegate of the Secretary in the Office of the Department in the State or Territory where the places are to be located. Conditions determined by the Secretary under section 14-6 may apply to all allocations of places in general, or to allocations of places of a specified kind.
It is an approved provider’s responsibility under the Act to comply with all of its conditions of allocation. Any breach of a condition may lead to compliance action.
Under the Aged Care Act 1997, there are three types of aged care places - residential, community and flexible. Extended Aged Care at Home - Dementia (commonly referred to as EACH Dementia) is a form of flexible care provided in the care recipient’s own home. This form of care is for care recipients in need of a high level of care and that have been assessed as having behavioural dysfunction associated with dementia. It is closely related to Extended Aged Care at Home (commonly known as EACH) - the only difference being that care recipients of EACH packages do not need to have a dementia related behaviour dysfunction.
A subsidy is paid to approved providers of Extended Aged Care at Home and Extended Aged Care at Home - Dementia per care recipient per day. In order to receive subsidy, section 51-1 of the Act and section 15.12 of the Flexible Care Subsidy Principles 1997 allow the Secretary to require each provider to enter into a Payment Agreement. The Payment Agreement is a contract between the provider and the Commonwealth that establishes the approved provider’s obligations in relation to provision of the care. It also facilitates compliance with the Financial Management and Accountability Act 1997 as the contract sets out what services are to be provided in order to receive Commonwealth subsidy.
This Determination makes it a requirement for a provider of Extended Aged Care at Home - Dementia to enter into, remain a party to, and comply with the Extended Aged Care at Home - Dementia Payment Agreement. Due to the limited number of places allocated since Extended Aged Care at Home - Dementia places were made available for allocation from 2005, the conditions now appearing in this Determination were applied on an individual allocation basis, using section 14-5 of the Act. For ease of administration (to bring it in line with the determination currently existing for Extended Aged Care at Home) such a determination is being made under section 14-6.
Making these requirements a condition of allocation, and therefore an approved provider responsibility, allows a clear compliance pathway between the quality of care requirements (the ‘Extended Aged Care at Home - Dementia Specified Care and Services’ and the ‘Extended Aged Care at Home - Dementia Standards’), which form part of the Payment Agreement, and the provisions in Part 4.4 of the Act concerning the imposition of sanctions.
Consultation with approved providers and care recipients was not undertaken as the Determination is of a minor and machinery nature and does not substantially alter existing arrangements.
The Determination is a ‘legislative instrument’ for the purposes of the Legislative Instruments Act 2003. Although the Determination applies to allocations that occurred before and after the Determination was made, this is in accordance with subsection 14-6(3) of the Act and is not affected by subsection 12(2) of the Legislative Instruments Act 2003.