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Impacts of the Introduction of an Application Fees for New Aged Care Provider

Are you considering diversifying your business to become a Home Care Approved

Provider?


With the ever-changing nature of government funding, many providers are considering additional revenue streams as a smart way to future-proof their business. We are commonly seeing this amongst NDIS organisations, community services organisations and those that rely on government grants and tendered services, as well as residential aged care organisations in the face of the impending changes to ACFI funding.


If you are a provider of care services wanting to add Home Care services to your repertoire, you need to submit an Aged Care Approved Provider Application. Approved Providers empower care recipients to have choice and make decisions about quality care, manage government subsidies, care recipient fees and payments, and are responsible for quality care service delivery.


For any prospective aged care provider, the Aged Care Quality and Safety Commission’s (Commission) recent decision to introduce a non-refundable application fee that is upwards of $9,000, along with fees for amendments or additional fees should the commission require additional information, may be a source for consternation. After all, it confirms the shift towards a more restrictive approval process that many in the industry have suspected for some time.



By combining a high cost of entry with a more rigorous assessment process, the Commission is seeking a higher quality application with a more rigorous framework and higher level of disclosure in relation to applicant experience, knowledge and capacity to comply with the robust legislative requirements of an Aged Care Approved Provider.


However, with a lack of clarity from the Commission on how to demonstrate this, prospective providers face a real risk of failing to meet the Commission’s standards when applying. The Application process is also incredibly cumbersome, with many established providers struggling to find the time and resources to dedicate to their application process amongst the myriad of operational priorities.


The introduction of the range of application fees makes the engagement of an experienced consultant a prudent strategy, as there is now more financial risk with the associated fee structure which is charged even if the application is unsuccessful. An experienced consultant can assist with preparation of the application and provide advice and information to give you the best chance of success in the application process. It should also be recognised that the Commission is also requiring a mandatory disclosure of the involvement of external consultancy in the preparation of the application.


The financial burden imposed on each application means an applicant can no longer simply reapply after an unsuccessful application, unless they are willing to make a considerable financial investment by paying the application fee each time they submit an application. Organisations will require the services of seasoned aged care industry consultants who possess aged care specific legal, financial, and human resources knowledge and expertise to complete their applications in order to mitigate the risk of an unsuccessful application.


If you are considering becoming a Home Care provider, then you must:

  • Be a corporation.

  • Have a minimum two years’ of financially sustainable trading history, evidenced by audited financial statements.

  • Have evidence of available capital to commence a new business unit.

  • Not have any disqualified individuals as key personnel.

  • Have experience providing aged care.

  • Understand approved provider responsibilities.

  • Has, or will have, systems in place to meet their responsibilities.

  • Have sound financial management records and practices.

  • Comply with financial obligations and other responsibilities as an aged care provider, if they are already one.


Applying to become an aged care provider is time consuming and complex. Our team has assisted dozens of organisations in a range of sectors with their application. We have developed a unique, collaborative approach to partnering with the applicant during the development of the application.


We can expertly help you to become an approved aged care provider by providing guidance or hands-on assistance with your application and supporting documentation. We understand the process, we know what is required by the Aged Care Quality and Safety Commission, and we can increase your chances of being successful the first time.

If you are interested in becoming an aged care approved provider please contact us via email info@carecfo.com.au, phone us on 1300 07 55 11, or click here to submit a request for us to call you.

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