Senate Community Affairs Legislation Committee, , 7:58:24 to 8:01:04
Witnesses explain how corporate and home-level administration costs are allocated across care, accommodation, and everyday living. IHACPA clarifies that administration of care is included in their calculations rather than being split solely between other categories.
Topics: Health, Cost recovery
Speakers: Senator The Hon Anne Ruston, Prof Michael Pervan
Um they they get accommodated across. It's just um uh amortized across those those areas.
And and what do they have a set percentage what that you allocate them to?
They do, and that's the Stuart Brown model that I was referring to, but um I'm sorry I don't have that on the top of my head.
Yeah. So in terms of um home level administration costs as opposed to corporate level administration costs, um are they do they differ?
Um they're not they're not delineated. There's the the costs for um direct costs of care and the administration of care, and then there's um administration that's covered under the hotelling and other um daily um living expenses.
Yeah, now I'm just trying to understand is there a different like you you you would have administration costs at a corporate level, so you might have 27 homes or you might have one, there's a corporate level of administration, and then there's obviously a home level administration that applies in a much more granular detail. Yeah, are those two different types of um uh administration costs allocated against the various components in a different way?
Yes, um, in that uh the way you described it, the administration costs that would apply at the home level, we would assume would be related to the administration of care and and not to the administration of the corporate body, and so that they are accounted for differently.
So what would be excluded? So you've got care accommodation. Everyday living. So at a corporate level, do you allo how do you allocate to all of those three areas at a percentage of your administration costs?
Yes. They are allocated by percentage on the basis of just some costing assumptions that come from the Australian costing standards.
Okay. So at the home level, when you're getting down to the actual home level, are those administration costs split between accommodation everyday living and care, or are they care excluded in terms of the allocation of administration costs?
Care is not excluded.
Not excluded?
We do include the administration of care. So yes, the answer is yes to the first part of your question.
Okay.
So there'll be two alternatives. So yes to the first.
So it's not correct that home level administration costs are split 50-50 between accommodation and everyday living with nothing allocated to care. That's not correct.
That's not correct.