Providers to avoid financial penalties for missing care minute requirements

Recently, the Department of Health and Aged Care and the Aged Care Quality and Safety Commission reviewed the care minute policy in a joint webinar for providers and industry stakeholders. The webinar explored potential penalties for non-compliance, provider responsibilities and more.

With care minute targets becoming mandatory from October 1, hello leaders  has recapped the event to help answer some of the top questions.

No financial penalty for care minute non-compliance

One of the burning questions on many providers’ minds is whether there are financial penalties for not meeting care minute targets. Mark Richardson, Assistant Secretary, Residential Care Funding Reform Branch, Department of Health and Aged Care, confirmed there would be no reduction to funding, highlighting how it differs from 24/7 Registered Nurse funding.

“In terms of care minutes there will be no financial penalty for not delivering care minutes… there will be no reduction in your AN-ACC funding,” Mr Richardson said.

“It’s true to say that is different from the 24/7 RN supplement… facilities that are eligible for that supplement with 60 or less people in your facility and you’re also delivering above the threshold of 20 hours [of RN coverage] per day, you’re eligible for that supplement. If you aren’t delivering those 20 hours there is a recourse to recover those payments,” he added.

In addition, failure to meet care minute targets will not be viewed in isolation. So providers who are not jeopardising the care or safety of consumers will be better placed than those who show repeated non-compliance. A detailed analysis of service and provider risk levels will be done to determine when and where the Commission has to intervene.

Changes are on the way

Alongside some critical affirmations on compliance and non-compliance, several incoming changes were highlighted, impacting Star Ratings and reporting periods. 

• Changes to individual care minute allocations for AN-ACC and respite classes will take effect from October 1, 2023: care minute allocations will increase for AN-ACC classes 1, 9-13 and respite class 103, while they will decrease/not change for AN-ACC classes 2-8 and respite classes 101-102.
• These changes are intended to align average care time responsibilities with care funding and resident care needs while removing incentives to ‘cherry pick’ residents based on care needs for better funding.
• New care minute target calculations will be dependent on resident case mixes, with the sector-wide average of 200 care minutes not necessarily what each provider will have to target.
• Care minute targets will be published in the week of September 18 through the My Aged Care Service and Support portal.
• Care minute targets for October-December will be based on June-August calculations, and incoming changes to resident case mix calculations will not have an impact on care minute targets.
• Additional changes to Staffing Star Ratings may occur next April, limiting a 3-star rating to providers that have met their mandatory care minute targets. Under current rules, you can achieve 3 or 4 stars without meeting care minute targets.
• New care time reporting assessment methodology will begin in September for residential aged care homes in NSW, VIC and ACT. Every provider will be assessed within 18 months from October.

Provider response will have an impact 

With non-compliance due to workforce and financial constraints one of the most concerning issues for providers, the Commission provided reassurance that attempts to comply will have a positive impact on the regulatory response. 

“Where a provider is able to demonstrate a willingness to take all reasonable steps to comply with their care minute responsibilities, the regulatory response will be different from the action we take if a provider is unable to demonstrate a suitable response plan or deliberately avoids compliance and obligations,” Peter Edwards, Executive Director, Compliance Management Group, Aged Care Quality and Safety Commission, explained.

“The Commission is unlikely to take escalated compliance action in the cases where a provider is actively showing they are working towards trying to make their targets, they have systems in place to ensure they are meeting reporting responsibilities. Where a provider is more reluctant and resistant to doing what is needed then we’ll take a proportionate response based on the level of risk non-compliance is causing.”

Potential responses listed by the Commission include caution letters highlighting non-compliance, continuous improvement plans or a notice of agreement that a provider will take necessary action when a high level of risk and resistance is evident.

More information

Providers and stakeholders can listen to and view the original webinar here, while the Commission encouraged anyone struggling to meet their care minute requirements to contact them for potential strategic support.