As announced on the 2016-17 Budget, there will be changes to the Complex Health Care (CHC) domain of the Aged Care Funding Instrument (ACFI).
The aim of these changes introduced by the Government is to ensure that aged care residents will continue to get the adequate level of care needed, and that the highest levels of funding goes to the residents with highest needs. The updated validation processes and systems will target high risk claimants and potential fines for repetitive false claims.
The changes in brief
The ACFI changes are being implemented in two stages.
Changes effective from the 1st of July, 2016
- Half indexation of current CHC domain from 1 July 16 to 31 December 2016.
- Changes to the CHC scoring matrix for new appraisals or reappraisals of any existing residents.
Changes effective from the 1st of January, 2017
- A new CHC Scoring matrix will be introduced applicable to all new appraisals or reappraisals.
- Changes to scores and eligibility requirements for particular CHC procedures in Question 12 of ACFI.
Please note these changes will not impact any existing appraisals.
The good news for aged care
Despite the announced ACFI funding cut of $1.2billion over four years in the 2016-2017 Federal Government Budget, the Government is aiming to increase funding for the resident aged care sector in aggregate at an average of 5.1% over the five years from 2016-2017 to 2019-2020.
What aged care providers need to do
Accru recommends that all aged care providers engage an ACFI expert to review their current ACFI structures, and assess the impact of the ACFI reappraisals changes.
You should ensure that payment statements are reconciled regularly, maximising claims in all domains. The method of comparing the current ACFI rate against its eligible ACFI rate is generally considered a good way to track the financial performance.
Accru Melbourne is currently conducting benchmarking for our nine existing aged care providers (including both For-Profit and Not-For-Profit Sectors) for the year end of 30 June 2016 with comparatives. The study will help our clients evaluate aspects of their operations by comparing performance with similar organisations. The results will be released soon.
Please contact us if you would like to know more about our services specifically tailored for the aged care sector.
By Amy Liu, Accru Melbourne