SEPTEMBER 2008

IN THIS ISSUE

Please Select an Article to Read

• Australian Law Reform Commission’s Privacy Report – Health Update
• Special Commission of Inquiry into NSW Public Hospitals releases its First Report
• Pharmacists and Franchising
• Accessing funds in the current market environment
• Aged Care Update
• Amendments to the NSW Medical Practice Act introduce compulsory reporting of doctors for sexual misconduct, substance abuse and incompetent clinical practice
• Case note: Peer evidence as to competent medical practice
• Proposed changes to general requirements for labelling of medicines
• Windfall for Medical Insurers in Medical Malpractice Cases
• Protecting Root Cause Analysis in NSW private health facilities
• Case Note: Court Of Appeal reversal on Domestic Assistance Threshold under Civil Liability Act
• New procedures for Medical Negligence Claims in the NSW Supreme Court
• IVF Donors to lose anonymity under new legislation in New South Wales

 

Aged Care Update

Amendments to the Aged Care Act 1997 (Cth)

The Aged Care Act 1997 (Cth) (‘Act’) was amended by the Aged Care Amendment (2008 Measures No. 1) Act 2008, which came into operation on 20 March 2008. This Amendment Act implements the changes to the Aged Care Act accommodation subsidies and resident accommodation fees that were announced in the 2007 Federal Budget.

It amends the Act to simplify the fees and charges paid by residents as well as the accommodation supplements paid by the Government for residents who cannot fully meet their own accommodation costs. Higher levels of accommodation payments will be phased in to support the provision of quality accommodation.

There are also amendments to the provisions governing income tested fees. Currently, self-funded retirees pay higher income tested fees because nearly all of their income is counted under the income test. However, pension income is currently not counted under the income test. This results in self-funded retirees paying more than part-pensioners of similar means. The amendments create a new income test that treats all people in the same way and treats all income the same.

There are three important safeguards that will ensure that residents are protected and that the changes do not adversely affect existing residents.

1. a resident’s accommodation charge will continue to be determined based on assessable assets at the time of entry to care and remain fixed until they are discharged;
2. the Government will continue to place a cap on accommodation charges; and
3. residents with unrealisable assets will continue to be able to apply for hardship assistance if they cannot afford to pay their charges.

The changes also:

1. broaden eligibility for community care grants for providers of Community Aged Care Packages and extend eligibility to Extended Aged Care at Home providers;
2. extend the operation of aged care legislation to the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands; and
3. make technical amendments to improve consistency and clarity in the Aged Care Act.

The amendments were implemented as a part of the Labor party’s policy to solve the “blame game” in health. The Labor party are attempting to eradicate the problem created by a lack of aged care beds which in turn places pressure on public hospitals.  

Boost to Funding

The Labor party released a statement on 21 June 2008 that nursing homes across Australia will benefit from new funding worth more than $8.7 million to encourage homes to use improved evidence-based clinical care.

Minister for Ageing, Mrs Justine Elliot, said more than $8.7 million would be provided in the round – part of the Australian Government’s $21.6 million over four years Encouraging Best Practice in Residential Aged Care (EBPRAC) program.

The funding round will target areas including:

• wound management;
• incontinence management;
• behaviour management;
• infection control; and
• palliative care.

The Australian government also announced on 3 July 2008 that Commonwealth staff will begin a number of reviews of funding claims made by aged care providers to ensure Australian government financial payments are matching the level of care for the nation’s 170,000 people living in nursing homes.

This review was officially announced by the Treasurer in the May 13 budget as result of data for the July 1, 2007 to March 31, 2008 period, which covers part of the previous Government and the Rudd Labor Government.

The data from the Office of Aged Care Quality and Compliance within the Department of Health and Ageing shows 37 per cent of claims upon examination had to be downgraded by Department of Health and Ageing assessors.

Written by Mick Patrick, Solicitor and William Slack, Paralegal