In this guest post, Dr Tanvi Dalal, Founder and CEO of FicusBridge looks at next month’s adjustments to AN-ACC funding, care minute targets, and staffing flexibility. These updates aim to improve care quality, particularly for residents with complex needs, while supporting rural providers.
As October approaches, the Australian aged care sector faces significant change. The recently announced adjustments to the Australian National Aged Care Classification (AN- ACC) funding model and care minute targets are set to go into effect, signifying a pivotal moment for some of our most vulnerable older Australians in residential care.
On the surface, the biggest change is the increase in the AN-ACC price (to $280.01). This adjustment, while seemingly abstract, translates to tangible improvements in care delivery and more competitive compensation for the superheroes who comprise clinical staff.
However, a nuanced look at what ‘improved care delivery’ truly means here shows that the meat of the matter lies in the changes to funding across different AN-ACC classes and MMM classifications.
Particularly noteworthy are the increases for Classes 3,5, 7, and 8, which predominantly represent residents with cognitive difficulties who often exhibit complex needs requiring more intensive care.
Class 8, for instance, will see a 10% increase in its National Weighted Activity Unit (NWAU), while Class 7 will experience a 6% rise.
These aren’t just numbers – they represent a significant acknowledgment of the true cost and complexity of providing quality care to those of our seniors who need us the most.
It’s crucial to note that these are often the residents for whom reassessment can be most challenging. Their conditions may fluctuate, making it difficult to capture their full care needs in a single assessment.
Unlike DEMMI assessments, judging true cognitive capacity can be a subjective task. This funding increase provides a buffer, ensuring these residents receive appropriate care even on their most challenging days.
That said, there are still challenges for providers to care for those who have been assigned Classes 9 through 13, which will see reductions in funding, underscoring the need for efficient resource allocation and innovative care strategies.
Another significant change is the adjustment to Base Care Tariff categories. Providers in MMM 2-5 locations – our regional and rural areas – who will now receive higher funding. Given that 1 in 3 older Australians (over the age of 65) live in non-urban settings, this move appears to be a nod to the unique challenges faced by non-metropolitan providers and should help improve care quality in these often-underserved areas.
The introduction of flexibility in staffing, allowing up to 10% of Registered Nurse (RN) minutes to be delivered by Enrolled Nurses (ENs), is another positive step and one that not only reaffirms the indispensable role of ENs in our care teams but also gives providers with more options for meeting their care minute targets.
The targets are set to increase across various AN-ACC classes. This change aligns with the funding adjustments, ensuring that residents with higher needs receive more direct care time.
It’s important to view these recently announced updates not just through a lens of financial projections, but in the context of overall care quality.
As recently highlighted by Peter Edwards, Executive Director of Compliance Management, Aged Care Quality and Safety Commission during a sector performance reporting session, there’s a clear correlation between a facility’s financial viability and its ability to provide quality care. These AN-ACC changes, therefore, aren’t about profitability – they’re about ensuring providers have the resources to deliver the best possible care.
However, the road ahead is not without its challenges. Providers will need to adapt their systems and processes to manage their funding under this new structure. They’ll need to ensure they’re meeting increased care minute targets efficiently and effectively and getting the care funding required to roster the right number of staff. This is where partnerships with funding management experts can be crucial.
With careful planning, efficient resource allocation, and a continued focus on resident needs, these changes have the potential to significantly enhance the quality of life for many of our older Australians. That’s an outcome we should all be working towards.
