Current transitional arrangements for place allocations
Until the commencement of the new Aged Care Act (New Act), the existing legislative requirements remain in effect: new residents must undergo an Aged Care Assessment Team (ACAT) assessment and obtain approval for residential aged care; and providers must be allocated places to provide such care. Transitional arrangements, originally implemented as the 'Transition Strategy', were only intended to be effective in the period between the final Aged Care Approvals Rounds (ACAR) in 2020 and the anticipated date of enactment of the New Act, now anticipated for 1 July 2025.
As the Department of Health and Aged Care (Department) has confirmed the delay in the commencement of the New Act, and in the interest of offering greater flexibility for providers to provide residential aged care in the lead up to the enactment of the New Act, the Department recently advised the two following processes from the Transition Strategy will continue to be effective, depending on the circumstances of a provider:
1. 'Bed-ready' residential care places
For providers who are currently in a position to provide immediate residential aged care but do not have sufficient place allocations, a 'bed-ready' application form may be completed. Providers who submit a 'bed-ready' application form must be able to demonstrate that their current services will meet the care and service needs of prospective care recipients.
The application process, however, will be non-competitive and the number of places a provider can apply for is unlimited. This transitional process will apply to providers who already have an allocation of places (and are able to continue offering residential aged care services in accordance with their current practices) but may wish to seek the allocation of additional places.
2. Intention to undertake residential developments
For providers who are not currently in a position to provide immediate residential aged care but intend to commence their services prior to the introduction of the New Act, an 'intention to develop' application form may be completed.
This process requires the provider to provide details about their proposed service, the number of residential places required, and the anticipated timeline of their service development. Once the Department has determined the provider is 'bed-ready', places will become available to the provider.
These transitional processes represent an interim step towards the new ‘Places to People’ approach to allocating residential aged care resources.
The new allocation system under 'Places to People'
‘Places to People’ is a person-centred approach to residential aged care which removes the need for providers to have an allocation of places to provide residential aged care and instead allocates places to the individual care recipients. Under the new regime, new residents will still be required to undergo an ACAT assessment, however, once approved they will be automatically allocated a place. The allocation of a place will permit the resident to then choose the residential aged care provider from whom they wish to receive services, subject only to the provider's availability of beds. The chosen provider will receive Commonwealth Government subsidies in the usual way. Consistent with the human rights-based approach of the New Act, ‘Places to People’ intends to bring about greater choice for consumers and will also incentivise providers to ensure the delivery of high-quality services, promoting a more competitive market environment. The Department is yet to clarify how those providers allocated places under the current regime, or those providers who may be allocated places under the transitional arrangements, will transition to the ‘Places to People’ approach once the New Act comes into force. We anticipate this will be addressed in the coming months and will keep you updated as the operational procedures are given more shape.
New Quality Standards
Separately, the Department confirmed today that it would be extending the public consultation period for its guidance resources on the draft strengthened Aged Care Quality Standards (Quality Standards) from 30 April 2024 to 19 May 2024. The Department is seeking feedback on its draft guidance resources which are designed to assist providers, aged care workers and other stakeholders understand the strengthened Quality Standards and equip providers with the requisite knowledge to ensure compliance with them, once they come into force. Stakeholders are able to provide their feedback to the draft guidance.
You can view our substantive update overviewing the strengthened Quality Standards.
Along with ‘Places to People’, the strengthened Quality Standards will come into effect with the commencement of the New Act.
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