Home care providers have lower margins than cafés, says ACCPA

ACCPA has expressed concern about the Federal Government’s plan to cap home care fees, with a new report from the peak body saying the average home care provider has a lower margin than the average café. The Home care fees and choice: Analysis of data on fees and market share report claims that capping fees would limit consumer choice as well as the ability for providers to raise prices in order to pay higher wages during the workforce crisis. According to the report, around 70% of Australians choose providers with 20-30% fortnightly fees, and the vast majority of Aged Care Planning Regions (ACPRs) with more than 600 clients have providers with fortnightly fees lower than 15%. ACCPA Interim CEO Paul Sadler (pictured) said the association supports caps on “unreasonable outlier administration and management fees”, but not a wider restructure of home care prices.

“Instead of a blanket cap on home care fees, a simple solution could be is to add a filter button to My Aged Care that would allow people to easily find high and low-cost providers. “It’s imperative that all pathways towards aged care services remain accessible and do not limit the choices of older people and their families. Rather, it should empower them with a range of options that suits their needs and financial circumstances,” he said.

COTA Australia applauded the push for home care management fee caps prior to the May election.