The Alliance provided a submission to the Independent Health and Aged Care Pricing Authority (IHACPA) Consultation on the Pricing Framework for Australian Residential Aged Care Services 2027-28.
Pricing equity must consider remoteness and scale
A key principle underpinning the Pricing Framework must be pricing equity to ensure that funding reflects the actual cost of delivering safe and high-quality care in different geographic settings.
Recommendations
- Question 1: Administration and Care Management Costs
Recognise both remoteness and facility size when allocating administration and care management costs. - Question 2: Data Sources and Representation
Adopt data collection and analytical methodologies that do not disproportionately exclude remote services. - Question 3: Cost Allocation Methodologies
Ensure the cost allocation methodologies accurately reflect the true drivers of expenditure in rural residential aged care services. - Question 4: Individual and Shared Care Costs
Ensure shared care activities are appropriately recognised and funded. - Question 5: Costs Associated with the Aged Care Act 2024
Pricing advice should reflect the actual cost of delivering care under the Aged Care Act 2024including the cumulative impact of rising operating costs, rather than service models that existed prior to implementation.
Conclusion
Appropriately funded rural residential aged care is not simply a matter of provider sustainability. It is fundamental to supporting ageing in place, maintaining community connections, reducing pressure on hospitals, and ensuring that older Australians can age with dignity regardless of where they live.