Optimising AN-ACC capabilities within the broader scope of industry reform
There are three components to AN-ACC:
The fixed component,
the variable component, and
the one-off adjustment payment
The variable component is based on a reference starting price which has been set at $216.80. This price corresponds with the value of 1 NWAU (National Weighted Average Unit). The actual amount a Provider receives depends on the degree of isolation and the weighting of the resident classification.
It is the variable component that Providers can and should seek to influence.
The Variable Component
The variable component for each resident is a function of the NWAU and their assessment outcomes against the AN-ACC Assessment Tool. The AN-ACC classifies in one of 13 levels with the highest classification being 1.0 NWAU, corresponding to $216.80 daily funding applying to classification 13.
As readers will be aware, AN-ACC shadow assessments commenced in April 2021 with phase 2 assessments to be completed by 31st July 2022 before going live on 1st October 2022.
With AN-ACC results being progressively released from 8th April 2022, Providers wishing to influence the variable component should monitor their MyAgedCare Provider Portal dashboard and develop a process to ensure assessments that may be up to 12 months old actually reflect the current care needs of residents.
According to the Dept’s AN-ACC dashboard (see below) as of the end of June 2022, there have been over 6,600 reclassification requests lodged by Providers As at June less than 50% (3,100) of these requests have been actioned.
Looking at the “Result of Re-Classification” graph, it is evident that a significant number of reclassifications have occurred in classification levels 10 -13, the highest funding level. 40% of reclassifications are assessed at levels 10-13 compared with 13% of original assessments.
That’s 3 times the original number of residents now assessed at the higher levels which deliver higher funding.
Given the significant number of reassessments, we decided to calculate the impact on a Provider whose resident profile fitted the original and the revised classification mix.
Taking into account the MMM classification under the original classification, a Provider’s average variable payment would be between $198.50 and $239.70. Under the reclassification, this increases to between $235.80 and $277.00 – a whopping $37.30 or between 16% and 19%.
As classification determines variable AN-ACC funding, this analysis demonstrates the importance of reviewing your shadow assessments and building both a system and capability to regularly review classifications from 1st Oct. Providers with an embedded process to ensure the AN-ACC classification reflects current care needs will be in a position to appropriately match care revenue with care costs. This is the foundation stone of sustainability, compliance and most importantly care outcomes for residents.
How we can help
Pride Living appreciates that our clients are under pressure with COVID and business as usual activities. This makes devoting resources to develop capabilities to cope with industry reform particularly challenging.
We’re pleased to announce the following support services:
Have you done yours?
It’s just as important to only apply for reassessments where they are appropriate. This maximises resource allocation and it will save you money, as the department has indicated that charges may apply for reassessment requests where there is no change.
We can tailor our services to meet your unique needs. We recognise that each organisation is unique. Hence, it is important for us to create solutions to suit you.
Welcome to the Pride, JC!
We recognise that providing the quality of service you’ve become used to will require more resources, so we’re pleased to announce the appointment of JC Yap who brings a wealth of experience in AN-ACC and rostering to complement that of James Saunders and his team. You can read more about JC’s unique skills here.