David Reece, CEO of Not For Profit AdventCare, which operates two aged care homes in Victoria, said the AN-ACC changes announced last Friday afternoon will leave them $50,000 short of budgeted income this year.

While the 5.6% increase in the AN-ACC price was well ahead of the 3.6% increase that AdventCare had budgeted for and the 42% increase in the Hotelling supplement was welcome, the weighting changes will impact the operator significantly.

About one quarter of AdventCare residents are in Classes 8,10, 13, which have all declined in weighting. For category 13 alone, the operator will be $8,500 per resident worse off annually compared to budgets. 

The reweightings will strip $192,000 a year from AdventCare’s budgeted revenue. After factoring in the uplift from AN-ACC funding and the hotelling supplement, the provider will still finish $50,000 short of its budget, David said.

David would like to see the Government explain why high-care resident weightings declined. "I'm not sure why they'd do that," he said.