technology
Upping the IT game
Bridging the gap between aged care and technology innovation .
By Craig Porte
During the most recent budget announcement , the federal government reported changes to its payment systems called Improved Payment Arrangements ( IPA ) in an effort to streamline the administrative processes of Australia ’ s ageing population and improve the protection of funds for care recipients . But like any significant change , the latest announcement requires patience , communication and a strategy in place .
Under the reforms – rolled out in two stages – the government will take responsibility for unspent funds for care recipients , amounting to a national cash stockpile of $ 1.48 billion . The changes are supposed to align home care with other government-funded programs , such as the National Disability Insurance Scheme ( NDIS ).
This move means that providers will now be paid in arrears instead of receiving a monthly payment in advance and will only be able to claim for services delivered rather than receiving a lump sum .
This begs the question : are service providers equipped with the right digital tools to shift from receiving payment in advance to collecting it after the services are rendered and a claim has been made ?
WHY THE CHANGE ? During the budget announcements , the government stated a major shift in how it delivers funds to aged care service providers .
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In February 2021 , we saw home care subsidies paid in full in arrears each month , regardless of the services provided . Providers will continue to hold unspent funds on behalf of their care recipients . Phase two will begin from September 2021 with home care subsidies to continue to be paid in arrears , but the payments will be for actual services delivered .
According to the government , the move will reduce the level of unspent funds held by providers and limit providers ’ prudential risk over time .
DO WE HAVE THE TECHNOLOGY TO SUPPORT IT ? The shift for aged care providers to payment in arrears is a new paradigm that will be difficult to manage without upgrading their IT systems . Aged care services , who haven ’ t already , will need to up their digital game to ensure the implementation of this new payment initiative is seamless .
Providers on the NDIS system will be accustomed to claiming as needed with payments processed in three days . But this won ’ t be the same for aged care . The systems aren ’ t built for that – yet .
Customers that don ’ t use NDIS are likely to be concerned by the latest changes because they ’ ve always received the payment in advance . This shift will pose a new obstacle for them , and they may
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Only around a third of service providers are currently as digitally enabled as needed .
even have to carry overdrafts to cover it .
The consequences for those who don ’ t get their systems in order , including falling behind on their claims and potential cash flow issues , could further damage the quality of care provided in our aged care system . Providers need to be resourceful and use the available technology to make sure the shift is seamless .
AUTOMATION CAN SAVE TIME AND MONEY The move to digital platforms across government entities is crucial to allow for more efficient and regular claiming for funds . Through our work with the NDIS we estimate that only around a third of service providers are currently as digitally enabled as needed to manage this transition successfully .
Another third will be ready within two to three months . Then you have the final third , who may not have resources and don ’ t have enough people to implement things , and so they continue to use paper-based systems . This group will need to access the government ’ s transition support funding that ’ s aimed at helping eligible providers to move to the new arrangements . The grant will help ensure these providers don ’ t fall between the cracks .
The right tools and technology can deliver significant value for our aged care facilities . Research from KPMG has shown that adopting technologies can improve quality and efficiency of care and help release staff from low-value administrative tasks and direct their focus to the individual . An improvement in the efficiency of aged care services could be exceedingly valuable .
The government ’ s new shift in payment strategies has the potential to bring positive change to the sector and push towards further digitalisation of our providers . But without investment in technology to streamline workflows and integrate fragmented systems , improving access to quality care for senior Australians , and ensuring the sector can move with the proposed changes , could remain a challenge . ■
Craig Porte is the managing director at Civica Care .