What might AN-ACC funding look like?

Of course, this is one of the most asked questions that we get around AN-ACC and understandably, a cause for anxiety when we don’t have any definitive answers yet. We know that ambiguity is the uncomfortable part of change, however, these are the facts we do have of what we can expect.

What will the AN-ACC funding be?

As per our written confirmation from the Department , it hasn’t been determined yet. However, here’s what we do know.

How does AN-ACC funding work?
AN-ACC is a Casemix Classification tool – all Residents will be allocated a classification of 1 to 13 which will determine the funding. AN-ACC is a 2 tier payment system, comprising of:

1. A fixed payment per day for costs of care shared by Residents.
2. A variable payment per day, for the cost of individual care needs for each Resident based on their AN-ACC Casemix class (will be determined by the Shadow Assessment Period; and
° An initial ‘one-off adjustment’ payment for each new Resident, to cover any costs with settling in a new Resident entering Residential Aged Care – indications from the Department in their webinar held on the 23rd September are that this is likely to be 5.28 x NWAU but this is yet to be confirmed.

National Weighted Activity Unit (NWAU)
Funding will likely be based on the National Weighted Activity Unit (NWAU). The NWAU is essentially an expression of resource allocation. 1.0 NWAU will have a price attached to it. No one knows what the price attributed to the NWAU will be as it hasn’t been released.

More than ACFI!
As per written confirmation from the Department:
“The Government did announce in the Budget that significant funding uplifts through the Government Basic Daily Fee Supplement and funding to support Care Minutes will be paid through AN-ACC from 1 October 2022.” This message was mirrored in a webinar presented by Nigel Murray – Assistant Secretary in the Funding Policy Reform Branch in the Aged Care Group of the Department of Health, in which he used $185 (the current Average ACFI rate) as the example for his explanation but went on to say that he expects NWAU to be more than ACFI (exact quote below) Here’s what he said:

“ …For example [the] ACFI subsidy at the moment, averages about $185 per day. So if the system was just going to work on that same price structure, payment would come to $185 per day. But it is important to note from those other reforms have already announced, which are around the BDF supplements and the care minutes which [are] significant funding uplifts, which means the average price will be much higher than the current price under the ACFI model. ”

And most recently the Department has released this Fact Sheet confirming again that it is likely to be more than $185.

We shall see! Even though it is exciting that all indications point towards increases in funding, it all comes with significant compliance increases in line with the 5 pillars of the Aged Care reforms. Hopefully we can take their word that this value is a conservative estimate.

With all this information, we can, for illustrative purposes base the potential rates on the NWAU being $185. You can find these below (click on the image to zoom in!)

This is a snapshot from our Phase 1 AN-ACC Analysis report. If you would like us to analyse the impact on your Organisation, call us on 1300 419 119 or reach out to team@providerassist.com.au

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