Another Victorian council exits home care
- Council exit: Wangaratta to stop delivering home care
- Reform impact: New Act drives sustainability concerns
- Provider transition: Clients expected to move by September
- CHSP uncertainty: Council exits likely to continue
After providing home care services for almost 30 years, a rural Victorian council has decided to exit the sector, citing “long-term sustainability issues”.
The Rural City of Wangaratta’s decision will impact Support at Home and Commonwealth Home Support Program (CHSP), as well as other service clients, totalling 1,500 people.
Reforms increase risks
The Council says the proposal has been driven by “significant changes in the aged care sector” under the new Aged Care Act 2024 and has been informed by the findings of an independent review.
“The review found Council’s operating model is not sustainable under new funding and regulatory settings and carries significant governance, compliance and clinical risks,” the Council said in a statement.
Under the new Act, aged care operators face increased regulatory obligations and complexity. In addition, the CHSP program is set to be rolled into Support at Home at some point after 1 July 2027, adding complexity and uncertainty.
As many as 100 local Councils have exited home care in recent years in anticipation of the reforms.
“Many councils across Victoria are facing similar challenges and are exiting or reviewing their role in aged care,” Wangaratta Council stated.
Staff are currently being consulted on the change, with consultation closing at 5pm on 17 July. After that point, a final recommendation will be put to a Council meeting.
10 alternative operators
Subject to the final decision, the Council expects to cease delivering Support at Home services by the end of September 2026, when its expected services will be transitioned to new providers.
There are currently 10 aged care providers delivering services in the Wangaratta region, and other providers are considering expanding into the area.
CHSP services will have a staged transition through to mid-2027 – the earliest date services could be transferred to Support at Home.
The Council said it will work with the sector to support clients moving to new providers.
Last month, a Senate Inquiry into the transition of the CHSP into Support at Home recommended the CHSP should be retained as a block-funded program and not transitioned into Support at Home.
Until the Government reverses its transition plan, operators will continue exiting home care, often closing services that have operated in local communities for decades.
