Home care administration fees drop to 15% average after Consumer Directed Care (CDC) reforms

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Most operators are charging an administration fee of between 10 to 20% of income – compared to an average of 30% according to a survey of 48 approved private and Not For Profit home care providers by care payment management company Capital Guardians, Community Care Review reports.

The highest amount charged was 30% – a considerable drop from 53% two years ago – while the average case management is now 11.25%.

Home care administration fees have been a major source of consumer complaints since the introduction of CDC in February 2017.

In July, Minister for Aged Care Ken Wyatt wrote to providers warning them to immediately publish their current pricing schedules.

Just last week, mandatory publishing of prices on My Aged Care came into effect, with a new pricing comparability table scheduled to start on the My Aged Care Service Finder by 30 April 2019.

However, the drop in fees also hints at the increasing competition between home care providers – and potential for more providers to exit the market.

We hear that few operators are ‘making money’ in home care.

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