EXPLANATORY STATEMENT
Veterans’ Entitlements (Treatment Principles – Transfer of Veterans from Rozelle Hospital) Instrument 2008 (Instrument No. R7/2008)
EMPOWERING PROVISION
Section 90 of the Veterans’ Entitlements Act 1986 (the Act).
PURPOSE
To amend the Treatment Principles (the Principles) to enable the Repatriation Commission (the Commission) to accept financial responsibility for the additional residential care amount that certain veterans are liable to pay as a result of their transfer from Rozelle Hospital into residential care facilities.
The Principles are made under section 90 of the Act and set out the circumstances in which the Commission may accept financial liability for treatment provided to veterans or their dependants (entitled persons).
Part 10 of the Principles sets out circumstances in which the Commission may accept financial liability for residential care services provided to entitled persons and includes the payment of “residential care amount” (also known as the daily care fee) in certain circumstances.
Part 9 of the Principles sets out the circumstances in which the Commission may accept financial responsibility for hospital treatment of entitled persons.
Essentially, if an entitled person is receiving residential care in a hospital, the residential care amount is ascertained by reference to the Health Insurance Act 1973.
In all other cases ie residential care other than in a hospital, the residential care amount represents the maximum daily amount of resident fees worked out under Division 58 of the Aged Care Act 1997.
Several veteran patients had been receiving long-term residential type care for chronic mental illness in “H” ward at Rozelle Hospital.
However, because of a decision by NSW Health, in April 2008 a new Mental Health facility co-located at Concord Repatriation General Hospital is expected to open, at which time Rozelle Hospital will close. The new facility will not have suitable long term residential care facilities, and therefore alternative accommodation was sought for the veterans.
It was agreed by the relevant parties that the veterans would be best cared for in a nursing home environment in a residential care facility, and as a result they were transferred to suitable residential care facilities.
All the veterans admitted to Rozelle Hospital were charged a residential care amount for nursing home type care in a hospital. In addition to this residential care amount, once the veterans were transferred to residential care facilities they were required to pay an additional residential care amount.
The attached Instrument will ensure that none of the relevant veterans are financially disadvantaged and enables the Commission to be financially responsible for the additional residential care amount that these veterans will be liable for as a result of being transferred from Rozelle Hospital to residential care facilities.
RETROSPECTIVITY
The Instrument is retrospective. The Instrument is taken to have commenced on 1 November 2007. For the purposes of section 12 of the Legislative Instruments Act 2003 (retrospective legislative instruments) the Instrument does not disadvantage any person nor impose any liabilities on any person (other than the Commonwealth).
CONSULTATION
Consultation on this proposal has occurred with the NSW State President of the RSL and the National President of the Vietnam Veterans Federation of Australia who support the implementation of this Instrument.
FURTHER DETAILS
See Attachment.
Attachment
Paragraph [1] sets out the name of the Instrument.
Paragraph [2] provides that the Instrument commences on 1 November 2007.
The instrument retrospectively commences on this date as this is the date that the first veteran was transferred from Rozelle Hospital to a residential care facility.
Paragraph [3] states that the Schedule to the Instrument varies the Principles.
Schedule
Item [4] inserts a definition for nursing-home-type care.
Item [5] inserts a definition for residential care facility.
Item [6] inserts a definition for Rozelle Hospital.
Item [7] defines the words “veteran has been transferred from Rozelle Hospital”. This has been inserted to ensure that the Instrument is limited to veterans who were patients receiving nursing-home-type care in “H” ward at Rozelle Hospital on or after 1 November 2007.
Item [8] inserts a new paragraph 10.5A into the Principles.
New sub-paragraph 10.5A.1 provides that where a veteran has been transferred from Rozelle Hospital to a residential care facility the Commission will accept financial responsibility for that part of the residential care amount charged by the residential care facility that exceeds the residential care amount the veteran would have paid had that veteran remained at Rozelle Hospital (the Rozelle amount).
If the Rozelle amount would have increased over time then the Commission will accept financial responsibility for that part of the residential care amount that exceeds the Rozelle amount as increased.