EmailHospital Circular 06/2007
Date Issued: 11 April 2007
Distribution: Chief Executive Officers, Executive Directors of Nursing, Managers Aged Care, Chief Finance Officers: Public Hospitals and Health Services
Subject: Commonwealth Government 2007-08 Aged Care Approvals Round – Public Sector Endorsement Process
Purpose: To advise of the revised endorsement process for public sector residential aged care providers wishing to submit an application for places in the 2007-08 Aged Care Approvals Round (ACAR)
1. Background
On 18 March 2007, the Commonwealth Government Department of Health and Ageing (DoHA) advertised notices of Information Sessions for the 2007-08 ACAR between 16 and 30 April in various locations across the country.
The invitation for Commonwealth Government Approved Aged Care Providers to apply for places and capital grants in the 2007-08 ACAR is expected to be notified on Saturday 14 April 2007.
It is anticipated that as in past rounds, the Commonwealth Government will allocate places targeting priority communities of interest and/or special needs groups and will also consider the extent to which proposals address the following key issues:
- Improving access to aged care services for people with special needs
- Bed readiness
- Dementia care and
- Respite Care
As approved providers, Victorian public sector agencies are eligible to apply for additional places under the ACAR. As in previous years, state public sector providers are expected to be deemed ineligible by the Commonwealth for Capital grants. Victorian public sector agencies are required to seek and gain the State’s endorsement for proposed ACAR applications for residential places prior to lodging any such application with DoHA.
2. Revised Endorsement Requirements for Public Sector Residential Aged Care Providers
The endorsement requirements apply to all Victorian public sector agencies proposing to apply to the 2007-08 ACAR for an allocation of residential places only.
Public Sector agencies proposing to submit to the 2007-08 ACAR for a Community Care Places (CACPS, EACH, EACH Dementia packages) are only required to formally notify their regional DHS contact of their intension to do so and provide a copy of their application at lodgement with DoHA. Applications for community care places are expected to be consistent with the agency’s current agreed strategic directions.
It should be noted that there are no specific State subsidies or supplements provided for Commonwealth community care places, therefore if ACAR applications are successful the CACPs/EACH services will need to be delivered fully within the Commonwealth Government funding allocations.
3. Endorsement Requirements for Residential places
Policy Context:
The State’s policy directions for public sector residential aged care services will guide decisions on the nature, location and level of public sector involvement, both at a broad level and for individual services. Public sector agencies operate within a broader residential aged care system that includes non-government sectors. Within that context, State policy is to contain public sector growth and focus on maintaining and upgrading existing services.
Expansion of public sector residential places is not considered necessary in metropolitan and larger rural and regional centres, where providers in the non-government sectors are prominent. Growth may be considered in smaller rural communities where there is a demonstrable need to ensure adequate service access locally and where the rate of growth is low and unlikely to attract new providers from other sectors.
The State Government has the overall responsibility, exercised in conjunction with agencies, of ensuring that 4230 public sector high care places, 2254 low care places and 304 flexible places achieve and maintain the required standards of buildings and care. This involves a substantial capital responsibility, including assisting current public sector facilities meet certification standards under the Commonwealth’s Aged Care Act (1997).
The State’s capital budget is already fully committed to meeting current capital responsibilities, therefore agencies proposing to apply for residential places under the ACAR will be required to demonstrate that they have sufficient funds in reserve to undertake the required capital works within the Commonwealth Government’s specified timelines.
Agencies will only be able to rely on internal borrowings as external borrowings require an approval process which cannot be managed in the timeframe and the outcome of which cannot be guaranteed. See the Borrowing Guidelines website.
While the ability to self-fund a residential capital project will not in itself ensure that a proposal is endorsed by the State Government, the lack of demonstrated capacity to self-fund such works will prevent endorsement of proposals.
Endorsement Criteria:
DHS will review each proposal based on the following criteria. Each criterion is required to be met.
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Demand and Supply
Demand and supply will be measured against existing Commonwealth benchmarks and data.
The agency must:
- Specify the target region and Commonwealth community of interest/special needs group to which the proposal relates;
- Demonstrate:
- expected growth in/unmet demand in the local community of interest/special needs group in specified timeframes, and
- that the proposed increase in numbers and types of places reflects the level of expected increase in demand.
- Demonstrate that the proposed expansion:
- is essential to maintaining access to services for people in the local community of interest/special needs group, including the absence of likelihood of other organisations providing this service.
- will be a well integrated component of (i.e. will strengthen and not fragment) the local service system, and
- is the most appropriate approach to meeting demand in the identified local community.
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Viability
The agency must:
- Provide information on its current financial performance including its surplus/deficit trend over the past three years.
- Demonstrate that an increase in places maintains or improves the agency’s financial viability, incorporating a consideration of the agency as a whole entity and the additional operating income and expenditure projections.
- Where the proposal relates to Low Care places, the agency must provide documentation on its accommodation bonds policy and intended charges.
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Capital
The agency must:
- Demonstrate that the proposed capital development is consistent with its agreed strategic capital priorities and plan.
- Provide a detailed business plan relating to the proposed expenditure detailing the source and amount of capital funds available for the proposed project and the projected capital development costs.
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Quality
The agency must:
- Demonstrate that the residential aged care service has achieved Commonwealth accreditation and certification.
- Demonstrate that the agency is able to sustain an expansion of service without compromising accreditation and quality outcomes
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Any new residential aged care place allocated by the Commonwealth Government to a Victorian PSRACS in the 2007-08 ACAR through an application without the required endorsement by DHS will be ineligible for State funding on an ongoing basis.
4. Process and Timelines for Proposals
The endorsement process for residential places requires public sector providers to submit their proposal to DHS for consideration of endorsement prior to lodgement with DoHA.
Due to the tight timeframe expected in the 2007-08 ACAR, proposals for residential places are to be documented using the Commonwealth ACAR application form, to be available from DoHA immediately upon advertisement of the ACAR, and supported by additional documentation as required to address the endorsement criteria outlined above.
In order to expedite the endorsement process it is important that proposals provide accurate and complete information. Proposals will be assessed against the endorsement criteria based on the information provided by the applicant agency.
To ensure the endorsement process is managed effectively, a contact officer from your agency must be nominated at lodgement of the proposal. DHS will address any further enquiries concerning proposals to the nominated person.
Proposals must be received by the close of business (5 pm) on Friday 11 May 2007. Proposals and enquiries should be directed by e-mail to PSRACS.ACAR@dhs.vic.gov.au.
DHS will provide formal notification to agencies on the outcome of proposals with sufficient time for endorsed proposals to be lodged with DoHA.
For queries on the content of this circular please contact Mr Frank Carlus, Manager Public Sector Residential Aged Care Services on 9096-7795 or e-mail frank.carlus@dhs.vic.gov.au
Approved by:
Dr C W Brook
Executive Director
Rural & Regional Health & Aged Care Services
