National Health Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1996B03278 Regulations Not in force Legislative Instrument

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National Health Regulations (Amendment) 1995 No. 52

EXPLANATORY STATEMENT

STATUTORY RULES 1995 No. 52

Issued by Authority of the Minister for Human Services and Health

National Health Act 1953

National Health Regulations (Amendment)

Subsection 140(1) of the National Health Act 1953 (the Act) provides that the Governor-General may make regulations, prescribing all matters which by the Act are required or permitted to be prescribed.

Currently, proprietors of government nursing homes receive a fixed rate of benefit for each nursing home resident. The rate of benefit paid in respect of such residents has been frozen since 1985. In the 1992 Federal Budget, the Government announced its intention that government nursing homes be brought into the care aggregated module (CAM) and the modified standard aggregate module (SAM) funding system which applies only to adjusted fee government nursing homes. The CAM:modified SAM funding system will result in higher levels of benefit being paid to the proprietors of nursing homes that become adjusted fee government nursing homes. In order for existing government nursing homes to become adjusted fee government nursing homes and thereby be brought into the CAM:modified SAM funding system, they must be prescribed as adjusted fee government nursing homes for the purposes of section 4AAAA of the Act.

A number of government nursing homes have previously been prescribed by regulation as adjusted fee government nursing homes for the purposes of section 4AAAA of the Act. This amended regulation prescribes two additional nursing home in New South Wales as adjusted fee government nursing home as from 1 April 1995. The details of the nursing homes that have been prescribed are attached.

The amendment also changes the name of the Devon House Nursing Home in Tasmania, which has been an adjusted fee government nursing home since 1 May 1994, to Strath Devon Nursing Home as the home was sold to a private proprietor on 3 April 1995.

In addition, this amendment amends the commencement date of two existing adjusted fee government nursing homes, Merv Irvine Nursing Home and Strathaven Nursing Home which were approved by the Executive Council on 1 September 1994 and 1 January 1995 respectively.

Merv Irvine Nursing Home is a newly established adjusted fee government nursing home. The residents were admitted to the home from 3 July 1994 therefore approval was sought to amend the commencement date of adjusted fee status to the earlier date.

Strathaven Nursing Home is a new adjusted fee government nursing, home which was created by the transfer of beds from Carruthers Nursing Home. The residents were admitted to the home from 17 December 1994. Therefore approval was sought to amend the commencement date of adjusted fee status for this home to the earlier date.

The regulations commenced on 1 April 1995 apart from the change of name for Devon House Nursing Home which took effect on 3 April 1995.

ATTACHMENT

Name and Address of Nursing Home

Approval No.


Corowa District Hospital Nursing Home
Guy Street
Corowa NSW 2646


1496S

Holbrook District Hospital Nursing Home
Bowler Street
Holbrook NSW 2644

1497S

 

Overview

The National Health Regulations (Amendment) 1995 No. 52, issued under the authority of the Minister for Human Services and Health, addresses the need to update the funding framework for government nursing homes. This amendment to the National Health Act 1953 aims to transition certain government nursing homes into the care aggregated module (CAM) and modified standard aggregate module (SAM) funding system, which provides higher levels of benefits for proprietors of nursing homes that become adjusted fee government nursing homes. The policy objective is to bring the funding structure for government nursing homes in line with that of adjusted fee government nursing homes, ensuring a more equitable distribution of benefits. This amendment specifically prescribes two additional nursing homes in New South Wales as adjusted fee government nursing homes and corrects the commencement dates for two others, while also reflecting a name change for a nursing home in Tasmania. The regulations were enacted to ensure these changes would take effect from 1 April 1995, except for the name change, which became effective on 3 April 1995.

Scope and Application

The National Health Regulations (Amendment) 1995 No. 52 pertains to the amendment of the National Health Regulations under the National Health Act 1953. This amendment specifically applies to government nursing homes within Australia, particularly those in New South Wales and Tasmania, by prescribing them as adjusted fee government nursing homes. This change aligns these facilities with the care aggregated module (CAM) and modified standard aggregate module (SAM) funding system, which provides for higher levels of benefit payments to proprietors. The amendment affects existing government nursing homes by altering their status to adjusted fee government nursing homes, thereby modifying their eligibility under section 4AAAA of the Act. Additionally, it corrects the name of one nursing home in Tasmania and adjusts the commencement dates of two newly established nursing homes in New South Wales to reflect their actual operational start dates. The regulations took effect on 1 April 1995, except for the name change which was effective from 3 April 1995. These changes are designed to ensure that the funding system accurately reflects the operational realities of these nursing homes and the dates they began providing services.

Key Provisions

The National Health Regulations (Amendment) 1995 No. 52, pursuant to subsection 140(1) of the National Health Act 1953, make several key amendments to the existing regulations. Primarily, the amendment involves the reclassification of certain government nursing homes to adjusted fee government nursing homes (section 4AAAA). Specifically, two additional nursing homes in New South Wales, Corowa District Hospital Nursing Home and Holbrook District Hospital Nursing Home, are prescribed as adjusted fee government nursing homes effective from 1 April 1995. This reclassification aligns these homes with the care aggregated module (CAM) and modified standard aggregate module (SAM) funding system, which is designed to increase the level of benefits paid to proprietors of nursing homes that meet the adjusted fee criteria. The amendment also entails administrative changes such as the renaming of Devon House Nursing Home in Tasmania to Strath Devon Nursing Home, effective from 3 April 1995, following a change in proprietorship. Additionally, the commencement dates for two newly established adjusted fee government nursing homes, Merv Irvine Nursing Home and Strathaven Nursing Home, have been adjusted to reflect the earlier dates of resident admission. Merv Irvine Nursing Home's adjusted fee status now commences from 3 July 1994, and Strathaven Nursing Home's adjusted fee status commences from 17 December 1994. These amendments aim to ensure that the adjusted fee status accurately reflects the operational commencement dates of these nursing homes. These regulations impose several obligations on the parties governed by them. Nursing homes that are reclassified as adjusted fee government nursing homes must now comply with the funding provisions of the CAM and SAM systems. This includes adhering to the specific criteria and requirements set forth in these funding models to receive the higher levels of benefits. Additionally, the renaming of Devon House Nursing Home to Strath Devon Nursing Home requires the new proprietor to meet any additional regulatory requirements associated with the change in proprietorship. The amendment of commencement dates for Merv Irvine Nursing Home and Strathaven Nursing Home ensures that the nursing homes are appropriately aligned with their actual operational start dates under the adjusted fee government nursing home category. Failure to comply with the provisions of these regulations may result in legal consequences. While the explanatory statement does not detail specific penalties, breaches of the National Health Act 1953 and its associated regulations could potentially lead to fines, legal actions, or other administrative penalties. The exact penalties would be determined based on the nature and severity of the breach, as well as any relevant case law and statutory provisions. It is important for proprietors and operators of nursing homes to ensure full compliance with these regulations to avoid any adverse consequences.

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