WShop27 Sept08 1

1
Aged Care Funding Instrument - ACFI6 months on
.....

• Presented by
• Peter Mackinnon
• of
• Wallace Mackinnon Associates Pty. Limited  
• for
• ACSA 2008 National ConferenceAdelaide

2
Topics To Be Covered

• Case study
• Capital funding

3
Case Study

• Residential aged care consisting of 74 high care,
  2 low care and 1 respite bed located in NSW.

4
Case Study cont.Resident Profile 31 August 2008

• 33 RCS residents predominately Categories 1 2.
• 31 RCS appraised under ACFI
• - 5 or 16 transferred to ACFI 26 or 84 RCS
  Saved (2 classified as HHH).
• - 26 RCS Saved 10 or 38 with funding between
  2.51 14.33 pbd greater than ACFI funding.
  16 or 62 funding less than ACFI funding between
  0.99 65.85 (Cat 2 to HML Cat 2 to LMM).
• 12 new ACFI residents
• - 3 classified as HHH.
• - 5 funded at capped rate of 138.11.
• - 1 classified as MNL - 76.80 pbd lowest.

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Case Study cont.Average Commonwealth Subsidy

• Base Commonwealth Subsidy including Adjustments
  and excluding CAP.
• Average for 2007/08 - 126.47 pbd.
• Average from 1 July 07 to 31 March 08 - 123.08
  pbd.
• Average from 1 April 08 to 30 June 08 - 126.47
  pbd.
• Average from 1 July 08 to 31 August 08 - 127.51
  pbd.
• Adjusted average of 124.64 after allowing for
  COPO from 1 July 2008 for period 1 July 08 to 31
  August 08

6
Case Study cont.Validation

• 18 resident files reviewed, 9 remained the same,
  9 downgraded (5 x 1 category, 3 x 2 categories
  1 x 3 categories).
• 9 downgraded 7 were RCS Saved 2 were RCS.
• Of the 7 RCS Saved, 5 would be funded under
  revised RCS Saved rate and 2 funded under ACFI.
• Unknown issues
• - How far back will the downgrades be backdated?
• - Will the residents whose ACFI rate is greater
  than the revised RCS Saved rate 15.00 be
  funded at ACFI rate?

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Case Study cont.Validation

• What to do
• Review the results in next Payment Statement from
  the Department.
• Appeal where appropriate on the downgrades.
• Have independent review of documentation
  undertaken.

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Case Study cont.Conclusion

• Too earlier to develop trend resulting from
• - too few new residents Access Economics
  Study indicates only 3,514 (11) of the 31,804
  used in the study were new residents.
• - results of validations on RCS, RCS Saved and
  ACFI residents.
• - number of residents on RCS Saved.

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Capital Funding

• Changes to funding from 20 September included
  increases to Pensioner Supplement, Accommodation
  Charge for pre 20 March 2008 residents as well
  the Concessional Resident Supplement.
• Pensioner Supplement up 2.86 to 6.83 from
  6.64.
• Accommodation Charge up 5.76 to 19.10 from
  18.06.
• Concessional Resident Supplement up 2.82 to
  18.23 from 17.73.
• If current rates of increases continue, the
  increased in capital funding from 20 March 2008
  will be absorbed.

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Capital Funding cont.

• At March 2008 107,136 or 71.47 of RCS residents
  on admission were high care (Source DoHA RCS
  Statistics March 2008).
• Under ACFI there are 52 high care, 11 low care
  and one unfunded bin. No DoHA stats available to
  date.
• The care needs of resident entering is changing
  due to the range of community services.
• Where will accommodation bonds come from in the
  future?
• Is it time for a universal method of resident
  capital funding in residential aged care?

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What do we need to do

• Know your entitlments.
• Carefully check the monthly Payment Statement.
• Seek adjustments were necessary.
• Keep your State Association informed of issues.