If you’re in the aged care sector, maybe running a small home care service, or thinking about dipping your toes into it, you might have heard about the new Aged Care Act which starts on July 1 this year.
It’s something you just can’t ignore.
It brings massive changes, focusing on a rights-based system that puts older Australians first.
What does this mean for your business?
As an insurance broker in Sydney, we know it’s a lot to take in, but on the brighter side, it’s also an opportunity to make a real difference.
Let’s look at it in a straightforward, no-nonsense way, with some key tips to help you prep.
Why Businesses Need to Pay Attention
The Royal Commission into Aged Care Quality and Safety found the old Act to be outdated.
Effective July 1, multiple laws shall be replaced with the new Act, supporting broader reforms to the aged care sector, such as the launch of the Support at Home program, and introducing stricter governance and heightened oversight
For businesses, this entails new rules and higher expectations, increasing the liability risks for aged care providers.
However, with every challenge comes the opportunity to deliver quality, person-centred care.
You can get ready without breaking the bank.
1. Get the Grips on New Provider Obligations
If you run an aged care service, the Act brings some serious changes to how you operate.
It imposes new duties on providers and responsible persons, like directors or managers, to uphold the Statement of Rights, ensuring older people’s dignity and safety.
Breaches, such as failing to prevent harm, can lead to civil penalties or compensation orders.
This heightens exposure to professional indemnity and directors and officers (D&O) liability claims, especially for SMEs with lean governance structures.
Considering these, how can you best prepare? Here are some tips for you:
- Dive into the Aged Care Quality and Safety Commission’s (ACQSC) Sector Readiness Plan.
- Review draft Aged Care Rules and particularly look at Stage 3 which covers provider duties.
- Join webinars and submit feedback about it.
- Train your team on the new standards now to avoid rushed, last-minute preparations.
2. Meet Workforce and Quality Standards Smartly
The Act levels up expectations for your workforce and care quality.
Stricter quality standards and increased care minute requirements raise the bar for compliance.
Additionally, stronger protections for whistleblowers and a new Complaints Commissioner mean understaffing, poor care, and other issues can quickly escalate into claims.
For businesses, this increases the risk of public liability and professional negligence claims.
Here are some practical tips to mitigate this:
- Update rostering systems to meet care minute requirements.
- Train staff on the strengthened Quality Standards.
- Review your whistleblower policies and ensure HR is ready for new screening rules.
- Allot a budget for higher wages. Government subsidies for Home Care Packages have increased to cover this.
3. Stay Informed and Leverage Funding Opportunities
The Act introduces a cost-recovery model with higher regulatory fees, and providers are met with changes in funding rules including a 2% required annual retention on Refundable Accommodation Deposits (RADs) for a maximum period of 5 years.
Businesses must stay proactive and keep an eye on opportunities to access support and shape the rules.
Here are some things you can do:
- Subscribe to aged care sector newsletters for updates on rules and consultations.
- Plan ahead for funding changes.
Effect on Insurance Premiums
The new Aged Care Act can result in the rise of insurance costs for aged care businesses due to increasing liability risks, claim frequency, and financial pressures.
In particular, intensified scrutiny concerning the role of directors and executives may drive up the costs of D&O, Professional Indemnity, and Public Liability coverages.
To be ready for any changes and risks, review your policies and get in touch with an insurance broker to obtain relevant, up-to-date covers so you don’t have to pay for something that you don’t need.
Cover your Business & Deliver Top-Notch, Rights-Based Care
Be ready for the Aged Care Act 2024 with Tank Insurance.
As an experienced insurance broker in Sydney, we can make things easier for you.
We can assist you in complying with new obligations, upskilling your workforce, staying engaged, and most of all, getting insured.
Don’t hesitate to reach out to us at Tank! Let’s check out compliance resources and get you prepared to give older Aussies the care they deserve.
Still curious? Got other worries? Dive into our blog for more insights!
