In Sep 2021 phase 2 of the “Improved Payment Arrangements for Home Care” will be introduced. Providers will receive their Home Care Packages Program funding based on the consumer’s actual expenditure in the previous month including the Provider’s Package Management & Care Management fees. The Government will hold the balance of the Unspent funding (based on the package level of the consumer) in an individual account for the consumer until it is required.
What’s your next move and do you know how this will impact your business?
- You will no longer hold Unspent funds for consumers commencing with you from September 2021. The funds will be held by the government and can be accessed by the consumer, via the Provider, when required.
- Unspent funds for existing consumers will sit with you until it is all used up or the consumer departs your service.
Impact to your cashflow
As you will no longer hold all your new consumers’ Unspent funds from this date, the Unspent funds on your Balance Sheet will gradually decrease down to zero depending on the timing of your consumers’ spending and their departure date.
There is no indication that the Unspent funds held on the Balance Sheet will have to be repaid to the government at this time so that will be a relief for some Providers.
You have two options:
- You can Opt-in to draw down on the consumer’s Unspent funds in lieu of claiming the payment from the government and register the Unspent funds balance; or
- Hold onto the consumer’s Unspent funds until they spend them or exit your service, continuing to make a claim for their monthly expenditure.
Impact on your consumers
Apparently none but that depends on how long it will take to access their Unspent funds held by the government.
Care Collaborator is cloud based software and very easy to set up, no matter how big or small your business, allowing you to start using it straight away.
We set you up and provide easy online training as soon as you’re ready to go.
By automating the on-boarding process your care managers can continue to focus on the consumer, making it a positive experience for both parties.
If you are interested in discussing, please contact Debra Ward via the Care Collaborator web page: www.carecollaborator.com.au or
Email – email@example.com or Call on 0438 020 728.