At last, the money! Royal Commission to examine funding, financing and prudential regulation in September – seven days of hearings

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A date for the Royal Commission into Aged Care’s long-awaited deep dive into how the sector could be made sustainable in the future – and how providers’ finances are regulated – has been announced.

For seven days from Monday, 14 September to Tuesday, 22 September – the longest hearing for the Royal Commission – the Commissioners will investigate the financing and sustainability of future improvements to the aged care system, the “appropriate” funding model or models to support the delivery of aged care services, and the prudential regulation of aged care providers.

In short, consumer contributions, ACFI and financial red tape will all be up for discussion.

The hearing will also look into:

  • whether there is a need to establish a specific financing mechanism to support Government (and private) contributions to the aged care system and how this could be achieved
  • whether care should be funded from consolidated revenue or such other models as social insurance as adapted in other jurisdictions
  • whether and how people should contribute to the cost of receiving aged care services, including for different kinds of aged care services (for example, domestic assistance, personal and clinical care, ordinary living expenses, and accommodation)
  • whether the current [AFCI] system for determining the amount of Government funding paid to aged care providers is ‘fit for purpose’
  • whether the funding available to providers under the current aged care system is enough to support high-quality aged care;
  • whether, how, and by whom should the price of Government subsidies and private fees for aged care services be determined, including in markets where there is not effective competition between providers
  • whether the prudential regulation that applies to aged care providers is enough to ensure the sustainability and stability of the aged care system, and if not, what changes if any should be made to improve the financial regulation of providers

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