Consumer Directed Care (CDC)…Who Pays?

With the increasing number of technologies being developed for use in the home care sector, the question has to be asked, who pays for this, the home care provider or the consumer?

There is only so much that can be allocated to a consumer’s package, especially when you take into account the package funding which is as follows:

Level 1 – $21.71 per day / Level 2 – $39.50 per day / Level 3 – $86.84 per day / Level 4 – $132.01 per day


Based on my research, most home care providers are taking up to 50% of the package funding to cover administration and case management costs. The other 50% is allocated to direct consumer service provision such as personal care, cleaning, maintenance, meal preparation etc.

Let’s look at the break down of the 50% taken by the home care provider…

The administration charge covers expenditure such as:

  • corporate overheads which is usually around 15%
  • additional IT required for CDC such as the Client Management System
  • capital equipment such as laptops and printers for the case managers
  • specific costs associated with having a separate office to run CDC and the manager’s salary

The case management charge covers:

  • staff costs including on-costs
  • travel re-imbursements or motor vehicle costs if vehicles are provided
  • IT operational costs such as internet access & phone costs
  • the cost of the administration staff who set up all the appointments, including the management of the rosters and liaising with the consumers & suppliers

Once you deduct these costs, about 50% of the package remains for tangible service provision to the consumer. So where does the cost of your software belong? Is it in the 50% deducted by the home care provider which will have to be stretched that little bit more, reducing their margin, or directly to the consumer which will have to be sold to the them by the case manager. This has to be considered in your sell strategy to the home care provider.

Contact Debra Ward at Care Collaborator via the website: assistance with Consumer Directed Care or if you are interested in a demonstration of the software developed to:

  • Simplify the data collection process and reduce the need for paperwork at the initial meeting with the consumer. It allows the Case Manager to focus on what they are good at which is assisting the consumer with the services they require to comfortably remain living at home.
  • Allow case managers to travel light, only requiring a portable device to input the data.
  • Allow case managers to focus on what they are good at, creating job satisfaction and reducing turnover.
  • Provide the Home Care Manager with a dashboard showing each case manager’s consumer load and the number of unsigned Agreements.
  • Reduce the amount of data being re-keyed into other systems which ensures resources are being re-directed into more important areas.

Start using Care Collaborator.

Book in your demo session here.

Call us on +61 (0) 438 020 728