industry & reform
A golden opportunity
ACAR 2020 provides significant opportunities for the aged care industry .
By Safdar Ali
The ACAR 2020 surprise
announcement just prior to
Christmas offers a golden opportunity for our industry amid ongoing challenges and uncertainty experienced in the past year .
Although the Department of Health ’ s ( DoH ) latest offer is reduced from that planned prior to the pandemic , it is a great step forward and should be a major focus of our industry .
Prior to the pandemic , the DoH announced 10,000 residential aged care ( RAC ) places , 750 short-term restorative care ( STRC ) places and $ 60 million in capital grants to be awarded through ACAR 2020 .
The pandemic and likely reforms in the aged care industry have prompted a shift in DoH ’ s focus . Now only 2,000 RAC places nationally are on offer , while the DoH holds 8,000 places . Additionally , the DoH will offer 1,028 instead of 750 STRC places .
Significantly , the government will also award a total of $ 150 million in capital grants to support providers to undertake essential capital works and infrastructure improvements .
RAC The DoH will allocate 2,000 RAC places in total nationally . The application in this ACAR will be assessed differently from those previously . The applications will be assessed on factors such as timeliness and location .
The projects which offer care immediately ( bed-ready projects or making places operational in the next 18 months ) will be prioritised . The location priority is ranked from 1 to 6 , with Statistical Area 3 ( SA3s ) ranked 1 considered areas of highest need and SA3s with ranking 6 classified as the lowest need areas . The location priority map is available on the department ’ s website .
The timeliness and location will determine the priority of the application . For example , applications demonstrating bed-ready projects located in category 1 SA3s will receive the highest priority , whereas longer-term projects ( operational in more than 18 months ) located in category 6 SA3s will be given the lowest priority .
STRC PLACES As part of ACAR 2020 , the DoH announced the allocation of 1,028 places – 278 more than originally provided . Out of 1,028 places , 500 are allocated for 2020 – 21 and 528 for 2021 – 22 . Around 29 per cent of the places will be allocated in NSW , followed by Victoria with around 25 per cent and Queensland with around 21 per cent .
CAPITAL GRANTS The DoH announced a significant amount of $ 150 million as part of ACAR 2020 . Much higher than the original $ 60 million . The funds are for projects in regional , rural and remote areas and / or projects which meet the needs of Special Needs Groups to ensure quality care will be delivered to communities in need .
The capital grant amount offers a great opportunity for providers to fund their capitals works for new facilities as well as undertake the essential upgrades to the existing services . For example , this could include reducing shared rooms / facilities to ensure better access and continuity of care to current and future customers .
The success of capital grants will depend on :
• geographic location , and / or
• the need / demand for RAC places meeting needs of Special Needs Groups , and
• the inability of providers to fund the projects through non-grant means such as borrowing . The DoH will focus on :
• supporting providers to deliver residential aged care in regional , rural and remote areas
• better access to dementia-specific services , and
• upgrades to infrastructure to ensure resident amenity , service viability and infection control . The projects will only be considered if they meet the applicant , financial and project eligibility . The DoH will also take into consideration a provider ’ s compliance history and may also consider the past history of managing the previous allocation of licences , capital grants and zero-interest loans .
While ACAR 2020 does not deliver the anticipated RAC places and bed licences , it does offer a golden opportunity to providers who do not have the financial capacity to offer quality services in regional , rural and remote areas and / or offering much-needed services for Special Needs Groups and address key issues such as dementia to ensure better access to care . ■
Safdar Ali is the director of The Ageing Equation , a consultancy whose services include ACAR application preparation , market catchment studies , financial feasibility analysis and acquisition advisory services . agedcareinsite . com . au 15