EXPLANATORY STATEMENT
Statutory Rules 1986 No. 352
SUBJECT: NURSING HOMES ASSISTANCE ACT 1974
NURSING HOMES ASSISTANCE REGULATIONS (AMENDMENT)
(Issued by authority of the Minister for Community Services).
Regulations 5A and 6 of the Nursing Homes Assistance Regulations (the Regulations) were made pursuant to section 37 of the Nursing Homes Assistance Act 1974 (the Act).
Sub-section 12(1) of the Act provides that the Minister may approve an agreement between the Commonwealth and a nursing home proprietor with respect to the provision, by the Commonwealth, of financial assistance in connection with the carrying on of a nursing home or the provision of approved services in association with the carrying on of a nursing home.
Paragraph 13(1)(a) of the Act provides that any such agreement is to include a provision under which the proprietor is to charge a fee of $32 per week, or such other rate as is prescribed, for each nursing home patient, other than certain specified patients. The rate of $102.20 per week is prescribed in regulation 5A of the Regulations.
In effect, the fee prescribed in regulation 5A of the regulations is the standard financial contribution of nursing home patients towards the cost of their nursing home care. The rate currently prescribed is equivalent to 87.5% of the sum of the maximum standard rate of pension and rent assistance payable under the Social Security Act 1947.
The amount of patient contribution has been reviewed to take into account the increase in pension rates which will become effective on 25 December 1986. The rate of patient contribution will be increased to a level that will maintain the 87.5% rate.
Accordingly, the regulations amend regulation 5A to increase the rate of the prescribed fee, for the purposes of paragraph 13(1)(a), from $102.20 to $106.05 per week.
Paragraph 13(1)(d) of the Act provides for the prescription of the fees to be charged to nursing home patients in nursing homes approved under the Act where the patient has received, has established a right to receive, or may be entitled to receive, a payment by way of compensation or damages under a law of a State or Territory in respect of the nursing home care to which the fees relate.
Regulation 6 of the Regulations prescribes fees for the purposes of paragraph 13(1)(d).
These fees have been set at a rate equivalent to the sum of the fee prescribed under paragraph 13(1)(a) of the Act, the weekly equivalent of the amount of Commonwealth nursing home benefit prescribed in sub-regulation 28A(2) of the National Health Regulations and, in the case of extensive care patients, $42.00. With the proposed increases in the fee prescribed under paragraph 13(1)(a), corresponding increases will be made to the weekly fees prescribed under paragraph 13(1)(d) of the Act.
Accordingly, the regulations will amend regulation 6 to increase each of the fees prescribed by $3.85 per week.
The regulations will come into operation on 25 December 1986 which is the date the increase in pension rates occurs.
Overview
The Nursing Homes Assistance Regulations (Amendment) Statutory Rules 1986 No. 352, issued by authority of the Minister for Community Services, amend the Nursing Homes Assistance Regulations (the Regulations) to update the fees prescribed for nursing home patients under the Nursing Homes Assistance Act 1974 (the Act). The Act was enacted to provide financial assistance to nursing home proprietors for the provision of nursing home care and approved services, with a focus on ensuring the sustainability and quality of nursing homes in Australia. The regulations specifically address the need to maintain the prescribed fee at 87.5% of the sum of the maximum standard rate of pension and rent assistance, reflecting the increase in pension rates effective from 25 December 1986. By increasing the prescribed fee from $102.20 to $106.05 per week, the amendments aim to ensure that the contribution from nursing home patients remains consistent with the changes in pension rates, thereby supporting the financial viability of nursing homes and the quality of care provided. The regulations will come into operation on 25 December 1986, aligning with the date of the pension rate increase.
Scope and Application
The Nursing Homes Assistance Act 1974 applies to agreements between the Commonwealth and nursing home proprietors concerning financial assistance for the operation of nursing homes and the provision of approved services. This Act ensures that nursing home proprietors charge a specified fee to each patient, except for certain specified patients, which currently stands at $106.05 per week as per the amended Nursing Homes Assistance Regulations 1986. This fee is set to maintain an 87.5% rate relative to the maximum standard rate of pension and rent assistance under the Social Security Act 1947. Furthermore, the Act and its regulations also address the fees for patients who have received, or are entitled to receive, compensation or damages for nursing home care, ensuring these fees are updated to reflect the changes in prescribed patient contributions. The amended regulations are designed to come into effect on 25 December 1986, aligning with the scheduled increase in pension rates.
Key Provisions
The Nursing Homes Assistance Regulations (Amendment) 1986 modifies existing provisions concerning the fees charged by nursing homes in Australia. Regulation 5A sets the standard weekly fee that nursing home patients are required to contribute towards their care, with the amendment raising this from $102.20 to $106.05 per week. This new rate is designed to reflect the increase in pension rates, ensuring that the patient contribution remains at 87.5% of the maximum standard pension and rent assistance amount.
Under Regulation 6, the Act also sets fees for patients who may receive compensation or damages for nursing home care. The amendment increases these fees by $3.85 per week, aligning them with the changes made to the standard fees. The new weekly fees under Regulation 6 will thus be the sum of the standard fee, the weekly equivalent of the Commonwealth nursing home benefit, and an additional $42.00 for extensive care patients.
The obligations imposed by these regulations on nursing home proprietors include ensuring that they charge the correct weekly fees as prescribed. For standard care patients, this is now $106.05 per week, while for those eligible for additional compensation or damages, the weekly fees are increased by $3.85. These obligations ensure that the financial contributions from patients are consistent with government policies and support structures.
Failure to comply with the fee requirements set out in the amended regulations may result in legal consequences for the nursing home proprietor. Although specific penalties are not outlined in the provided text, breaches of regulations under the Nursing Homes Assistance Act 1974 can generally lead to enforcement actions, fines, or other sanctions. The exact penalties would depend on the severity and nature of the breach, as well as any applicable legislation.