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$78.3 million in temporary extra funding for residential aged care providers to start this month – James Underwood says COVID-19 provides opportunity for operators

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The Government has announced further details for its $444.6 million funding package for the aged care sector during the coronavirus crisis, including $78.3 million to support “additional costs and workforce supply pressures resulting from COVID-19”.

The Government has been light on the detail on how the funding will be distributed, simply stating all aged care providers will receive a “portion of additional funding”

“It will be administered through uplift to subsidies paid through Aged Care Funding Instrument with effect from 1 March 2020 to 31 August 2020,” they said.

But with around 190,000 occupied beds across Australia currently, that is around $412 per bed over six months or $103 a week – not much.

But James Underwood (pictured above) says there is an opportunity for operators to both fill empty beds and service the community – by taking in residents being discharged from hospital for respite.

He is receiving more queries from providers about making extra residential respite care places available on short notice to help older people – particularly those on the higher-level Home Care Packages (HCPs) leave hospital more quickly asking how the system, works.

Under the subsidy arrangements, the Government continues to pay the full basic subsidy and any supplements that apply for up to 28 days of residential respite leave in a financial year for people receiving a HCP when they take up short-term respite.

If they go over the 28-day allowance, this drops to 25% of the basic subsidy rate and includes other supplements, but not primary supplements.

James also points to the social service that this provides – keeping frailer Australians on Level 3 and 4 packages out of harm’s way in the community.

“The safest option at the moment for those at the frailest end of home care group is a temporary placement as the community transmission of COVID-19 can be diminished and the individual doesn’t have to work out how to access food and supports.”

“With 20,000 beds in a safe and secure environment, this is an enormous opportunity to provide assistance to people who would otherwise be better to stay in hospital after an acute episode.”

The Department of Health has just streamlined the process for providers to increase their residential respite days.

Note however Ansell Strategic’s discussion that hospital transfer and respite can take beds from RAD clients, accelerating a run out of RAD funds, plus require more staff.

You can now simply make a request via email to the Department’s State or Territory office in which the service is located with the service name, total number of respite days required, and the date of effect.

You will then be notified of the outcome by email from the state/territory office.

See the email addresses below:


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