The measure responds to the Royal Commissions’ Recommendation 120 which found that the Australian Government should fund approved providers for delivering residential aged care through a case mix classification system such as the AN-ACC. The Royal Commission also recommended that ongoing evidence-based reviews should be conducted to refine the model iteratively to ensure that it provides accurate classification and funding to meet assessed needs.
The AN-ACC was developed in consultation with the aged care sector and consumer groups over several years and is said by the Australian Government to encourage innovation and investment in the sector.
The transition from the ACFI to the AN-ACC will be automatic and Services Australia will calculate and pay subsidies to providers based on the new AN-ACC classifications for residents from 1 October 2022.
As part of the 2022-23 Federal Budget, it was announced that the AN-ACC model would start at $216.80 for a standard day of care, with other care requirements, such dementia-related care, receiving additional funding.
This is an increase of up to $23.00 per day from the ACFI model for a standard day of care.
The Budget also allocated $20.1 million to support the transition from the ACFI model to the AN-ACC.
How can providers prepare for the transition?
- Providers will need to keep ACFI paperwork up to date and finalise claims as soon as possible after 1 October 2022 when the AN-ACC takes effect.
- Providers should also ensure that their processes for reviewing consumer assessments and care plans are strong and that care plans are updated to ensure that they remain reflective of a resident’s assessed needs.
- The Department of Health has advised that providers will be advised of the details of their residents’ classifications before the implementation of the new funding tool. It will be then incumbent on providers to request reassessments for residents whose needs have changed between the assessment and the commencement of funding.
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