LASA unveils Home Care Package Pricing Tool ahead of new pricing transparency requirements – regulatory action against providers on the cards

Could this prove to be the edge to success for home care providers looking to recover from clients putting packages on hold during COVID-19? Developed by Leading Age Services Australia (LASA) and health, aged care and disability consultancy firm O’Connell Advisory, the Home Care Package Pricing Tool has been designed to streamline the capacity to publish accurate pricing schedules and full price lists – which was introduced as a legal requirement by the federal Government on 1 July last year. Pricing transparency for HCPs has been a long-running issue in the sector, with the Government threatening to mandate the publishing of pricing schedules as far back as July 2018 – two years ago – following consistent consumer complaints about transparency and fees. By 1 July 2020, HCP providers will need to ensure their clients’ home care agreements have been reviewed and include a copy of their pricing schedule, as published on My Aged Care. From that time, providers must charge the prices in the schedule – unless otherwise agreed – and cannot charge separate amounts for any business-related administrative costs. Administration charges must also be ‘reasonable’ and included in direct service prices. LASA CEO Sean Rooney says there are signs that providers could face regulatory action if they don’t comply.

“The Aged Care Quality and Safety Commission audits of home care providers indicate they are asking for client financial statements and reviewing financial governance arrangements,” he said. “When reviewing applications to become an Approved Provider, the Commission is also requiring detailed financial metrics in business plans.”

The tool is designed to simplify these requirements, with the current subsidy rates for all four package levels and, as these are adjusted by the Department of Health, purchasers will be issued with an updated tool so they can review their prices at that time. It also contains both monthly and annual data sheets to enable analysis for both time periods, plus forecasting across a year, and can be used for planning by helping to set KPIs for client numbers, profitability, care hours and expenditure on services. And while the Government has put the new payments in arrears arrangements for home care on hold because of the pandemic, the tool can also assist providers to analyse what impact this change will have on their cash flow situation. LASA and/or O’Connell Advisory will provide two hours’ consulting/business advisory service as part of the purchase price, which is $2,500 for members or $3,000 for non-members (Ex GST). To find out more, email members@lasa.asn.au or call 1300 111 636.