The Government is implementing a massive aged care reform agenda. Here are the five key reforms that will affect aged care providers in October to December 2022:

• Aged Care Funding: AN-ACC to Replace ACFI – Commences 1 October 2022
• Quarterly Financial Report Obligations (Including Food and Nutrition Reporting) – Due 4 November 2022
• New Code of Conduct and Banning Orders – Commences 1 December 2022
• New Governance Responsibilities – Commences partially 1 December 2022 and partially 1 December 2023
• Star Ratings and Publication of Aged Care Providers’ Information – Commences late 2022

Aged Care Funding: AN-ACC to Replace ACFI – Commences 1 October 2022

From 1 October 2022, the Aged Care Funding Instrument (ACFI) will be replaced by the Australian National Aged Care Classification (AN-ACC).

What You Need to Do

Aged Care Providers should ensure they have followed the transitional arrangements that the Department of Health and Aged Care has implemented over the course of this year to help providers shift from ACFI to AN-ACC.

Further Information

Department of Health and Aged Care: Residential aged care funding reform; Department of Health and Aged Care: The AN-ACC care funding model; New Bills Presented to Parliament Affecting Residential Aged Care Provider Responsibilities.

Quarterly Financial Report Obligations (Including Food and Nutrition Reporting) – Due 4 November 2022

Aged care service providers are now required to submit the new Quarterly Financial Report (QFR) in addition to their other reporting obligations. Via the QFR, residential aged care providers must report:

• answers to the viability and prudential compliance questions
• quarterly financial statements, at the approved provider level
• residential care labour cost and hours, at the facility level
• quarterly food and nutrition report for each approved provider service.

Note that Food and Nutrition was previously reported separately but is now reported as part of the QFR.

The QFR must be submitted four times throughout the financial year. Submission dates for the 2022/23 financial year are as follows:

• Quarter 1: report due 4 November 2022 (reporting period 1 July 2022 - 30 September 2022)
• Quarter 2 report due 15 February 2023 (reporting period 1 October 2022 – 31 December 2022)
• Quarter 3 report due 5 May 2023 (reporting period 1 January 2023 – 31 March 2023)
• Quarter 4 report due 4 August 2023 (reporting period 1 April 2023 – 30 June 2023)

What You Need to Do

Aged Care Providers should ensure they are gathering the required data and will be ready to report by 4 November 2022.

Further Information

Department of Health and Aged Care: Quarterly Financial Report; Department of Health and Aged Care: Quarterly financial report updates and Q&A; Financial and Prudential Responsibilities: A Summary for Aged Care Providers.

New Code of Conduct and Banning Orders – Commences 1 December 2022

This reform requires aged care providers to comply with a new Code of Conduct. It will also give the Aged Care Quality and Safety Commissioner power to take action in relation to compliance with, and enforcement of, the Code of Conduct, including the power to ban a person from working as an aged care provider or aged care worker.

This reform is expected to commence on 1 December 2022. As at 26 September 2022, the new Code has not been issued. The Department of Health and Aged Care and the Aged Care Quality and Safety Commission have indicated that they will provide more guidance on this reform soon.

What You Need to Do

Aged Care Providers should familiarise themselves with this summary of the upcoming reform and await further guidance from the Department of Health and Aged Care and the Aged Care Quality and Safety Commission.

Further Information

Aged Care Quality and Safety Commission: Code of Conduct for Aged Care – information for providers; New Bills Presented to Parliament Affecting Residential Aged Care Provider Responsibilities.

New Governance Responsibilities – Commences partially 1 December 2022 and partially 1 December 2023

Under this reform, from 1 December 2022, all approved providers will be required to:

• meet reporting requirements for material changes
• assess the suitability of their key personnel at least once a year
• report annually on their operations.

Providers who were approved prior to 1 December 2022 will have until 1 December 2023 to meet the following
additional requirements:

• ensure their governing body has a majority of independent non-executive members with the skills and experience to deliver safe and high-quality care, and that at least one member has experience in providing clinical care
• establish and continue a quality advisory body
• offer consumers and their representatives the opportunity to establish one or more consumer advisory bodies (every 12 months).

What You Need to Do

Aged Care Providers should familiarise themselves with this summary of the upcoming reform and await further guidance from the Department of Health and Aged Care and the Aged Care Quality and Safety Commission.

Further Information

Aged Care Quality and Safety Commission: National Aged Care Reforms; New Bills Presented to Parliament Affecting Residential Aged Care Provider Responsibilities.

Star Ratings and Publication of Aged Care Providers’ Information – Commences late 2022

Star Ratings

This reform introduces a new requirement for the Secretary of the Department of Health and Aged Care to evaluate an aged care providers’ performance, allocate them a “star rating” and then publish this rating. Residential aged care services will be given an overall star rating, as well as a rating against four sub-categories:

1. five quality indicators
2. service compliance ratings
3. consumer experience
4. staff care minutes.

This reform is expected to commence sometime in late 2022. The Department of Health and Aged Care and the Aged Care Quality and Safety Commission have indicated that they will provide more guidance on this reform soon.

Publication of Aged Care Providers’ Information

This reform requires the Secretary of the Department of Health and Aged Care to publish information relating to aged care services. This reform also empowers the Minister to tell the Secretary what kind of information should be published. This reform does not directly affect aged care providers and does not require providers to collect or disclose information. However, providers should expect that in the near future the Department of Health and Aged Care will use the powers granted by this reform to publish information about aged care providers such as:

• financial information
• amounts of care time provided
• details of key personnel; and/or
• information about the staffing of an aged care service.

This reform overlaps with the new star ratings, but it is possible that the Government could publish information about providers in other ways as well. This reform is expected to commence on 1 December 2022.

What You Need to Do

Aged Care Providers should note that from late 2022 some of their financial, care time, and staffing information may be published by the Department of Health and Aged Care, and the Department will be allocating them a “star rating” and publishing this rating.

Further Information

Department of Health and Aged Care: Star ratings for residential aged care; New Bills Presented to Parliament Affecting Residential Aged Care Provider Responsibilities; Aged Care Quality and Safety Commission: National Aged Care Reforms.

Conclusion

These five reforms are only the first stages of a massive agenda for change that will unfold over the next few years. Other key reforms set to commence next year include:

• Expansion of the Mandatory Quality Indicators – commences 1 April 2023
• Registered Nurses required 24/7 – commences 1 July 2023
• Mandatory 200 minutes of care time per resident per day – expected to commence October 2023

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