Many in the sector – notably Allambie Heights Village Ltd. CEO Ciarán Foley and Envigor CEO Nick Loudon – have said that the Government doesn’t respect aged care operators and the essential service they provide and argued for a new relationship between the two sides.
Now the Royal Commission is turning its attention to these calls.
In short, the Royal Commission is looking at whether the relationship and roles of Government and providers need to be redefined – and how this could be done.
In particular, they say they want responses on market management – managing new and existing markets for aged care services across Australia – and commissioning/tendering – how providers could be approved for services, ranging from “self-selection” to open tenders and how this could be achieved, with examples where possible.
The Commission has issued an invitation for submissions on system governance, market management and the allocation and clarification of roles and responsibilities for these functions by Monday, 13 July – just three weeks away.
“By their Terms of Reference, the Royal Commissioners are required to consider what can be done to strengthen the system of aged care services to ensure high quality and safe aged care, and to consider systems to ensure that high quality care is delivered, such as governance arrangements and management support systems,” the Commissioner said in a statement.
“The aged care system requires clear and structured leadership. Establishing clear roles and capabilities of those responsible for the aged care system is essential to ensuring quality and safe aged care.”
The Commissioners then offer a history lesson on the aged care system in Australia, noting that in 2012 the Federal Government took “full funding, policy, management and delivery responsibility for a consistent and unified aged care system”.
However, they also conclude that the system is highly complex, with a “very large number of disparate for-profit and not-for-profit (including government) providers”; a range of funding models including grants and market-like delivery systems; two different regulators: the Department of Health and the Aged Care Quality and Safety Commission; and consultation between the sector and Government is mostly informal.
The Commissioners say they want to examine whether improvements should be made to the official arrangements to improve governance systems and management of the supply of aged care services, and to improve the clarity of the roles and responsibilities for these functions.
This includes how providers are chosen and accredited as approved providers.
The Commission in particular says they want submissions on:
- The essential characteristics of system governance in the Australian aged care system.
- How system governance can support the delivery of quality and safe aged care services with regard Australia’s geographic and demographic characteristics.
- A description of the role of a system governor in the Australian aged care system, including consideration of what structure a system governor should take.
- Potential legislative and administrative reform to be considered in the design of system governance in the Australian aged care system.
- The role, if any, of market management in the Australian aged care system.
- The role, if any, of commissioning/tendering in the Australian aged care system.
- When and how a system governor ought to monitor and intervene with the performance of market-like mechanisms in the Australian aged care system?
- Whether there are functions that should be exercised by the system governor in the location or region where the services are provided? Whether there are functions that should be exercised by the system governor centrally?
- Other matters that you consider relevant to the overall governance of the aged care system.
Interestingly, there is a hint that there may not be a hearing on the relationship between the Government and providers because of the pandemic.
“In light of the effects of the COVID-19 pandemic on the Royal Commission’s program, there is no certainty that a public hearing will be conducted on these matters,” their statement reads.
“If necessary, we will invite the Commissioners to reach their conclusions on these matters on the basis of evidence and submissions in documentary form.”
Another reason for providers to have their say – the Commissioners may be making their recommendations based solely on what information they receive in the next three weeks.
You can read the full criteria for submissions here and email submissions to ACRCSystemGovernance@royalcommission.gov.au.
