1 / 10

Adapting to Consumer Directed Care funding

Adapting to Consumer Directed Care funding. Developing an approach for Unit Based Costing. Australian Multicultural Community Services (AMCS). Are a not-for-profit charitable organisation that supports individuals from culturally and linguistically diverse backgrounds

rayya
Download Presentation

Adapting to Consumer Directed Care funding

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Adapting to Consumer Directed Care funding • Developing an approach for Unit Based Costing

  2. Australian Multicultural Community Services (AMCS) • Are a not-for-profit charitable organisation that supports individuals from culturally and linguistically diverse backgrounds • Have an emphasis on providing community aged care • Work closely with other multicultural organisations and initiate capacity building projects in the rapidly changing funding and service environment

  3. About Consumer Directed Care • In July 2010 the Australian Government commenced Consumer Directed Care (CDC) across all Australian Government funded Packaged Care Programs • CDC allows people to have greater control over their own lives by allowing them, to the extent that they are capable and wish to do so, to make choices about: • the types of care services they access • the delivery of those services • who will deliver the services and • when they are delivered • The CDC model delivered in packaged care is an individual budget based on a needs assessment and administered on the care recipients behalf, by an approved provider, for an agreed percentage of the allocated budget

  4. Impact of Consumer Directed Care • The introduction of CDC will require community aged care providers to modify the way in which they deliver services • This will include a greater level of accounting requirements through the collating of information for monthly statements detailing the cost of care and funding received by clients • This new government funding model presents significant challenges for NFPs to ensure financial viability

  5. Building community sector capacity to adapt to a new funding environment • A review of AMCS’s readiness to operate under a CDC model was undertaken in partnership with GreatConnections, a program of Leadership Victoria • GreatConnections links experienced professional volunteers with the needs of NFPs in areas of business planning and change management • A skilled volunteer assisted AMCS to assess their organisational systems and processes and build their capacity to develop and implement a unit-based costing model • AMCS developed a trial based on the assessment results and developed a tool to assist other NFP organisations to adapt to a CDC environment

  6. Developing a costing model • Following a project trial and analysis, and consultation with other aged care organisations, AMCS established a CDC financial approach • The core components of the approach are: • A costing model that outlines how to allocate expenses to programs, using either a ‘labour’ rate or an ‘overhead’ rate • A comprehensive tool available in Excel format to assist providers determine these rates • A training program developed to assist service providers transition to CDC. It covers: • understanding the real cost of delivering care, • calculating appropriate labour rates, overhead rates and margins

  7. How expenses are allocated in the new costing model • Expenses are allocated to programs in two methods, either directly or by recording centrally • Directly includes the cost of care and wages (plus on-costs) incurred and an hourly rate calculated for care workers and case managers • Recording centrally costs are allocatedbased on the resources intensity of the program; includes direct labour, administration and general overheads • An appropriate margin to ensure sustainability can be included in a direct hourly labour rate or separated out on the client’s budget

  8. Key learning: how to adjust to CDC model • Community sector organisations impacted by the introduction of CDC can build internal capacity to adjust to the new policy and funding model by ensuring: • financial recording systems are in place • relevant staff understand the overall costs of providing home care • regular reviews and evaluation of care levels are undertaken • increased attention to and awareness of costing activities • staff are supported and guided in their transition to CDC

  9. Conclusion • To ensure financial sustainability for NFP community service organisations, the Building Community Sector Capacity to Adapt to a New Funding Environment project has identified the systems and cultural changes required for the future • The project outcome is a CDC tool and training program developed to assist organisations to become CDC-ready • This resource is now available for use by other community organisations by through AMCS • The project has also highlighted the benefits of partnership with other NFP organisations, such as Leadership Victoria, to access expertise which may not be available ‘in house’

  10. Further information • Further information on the CDC tool and training program developed through this project can be obtained by contacting Australian Multicultural Community Services: • Tel: 03 9689 9170 • Email: info@amcservices.org.au • Website: www.amcservices.org.au • Details about CDC and guidelines are available from the Department of Health and Ageing website: http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-cdc-ops-manual.htm

More Related