Senate Community Affairs Legislation Committee, , 6:14:34 to 6:20:43
Inquiry into the 38% average increase in service type costs and the financial sustainability of home care providers operating on thin margins.
Topics: Social services, Workplace relations
Speakers: Senator The Hon Anne Ruston, Mr Greg Pugh, Ms Sonja Stewart, Ms Jasmine Snow, Unknown Speaker
I I mean I've just I mean I I obviously read the Stuart Brown reports, and I'm sure you read the Stuart Brown reports too. Um and their their figures are saying around 39,000, which is significantly different to 28,000, but it would be good to get your consistent data. Um so on that basis of that data, what has been the average utilisation of package? Have we seen a change in the average amount of utilisation per package? We're talking about a quantum number here, but per package, um, my understanding that packages were being um utilised at around um eighty-eight per cent or so um twelve months ago. Have we seen a change over uh the last period of the level of utilisation, the percentage of level of utilisation of packages?
So I think we took that question on notice as well, and there will be that explanation about the data, because I think um I think we've made the point about the extra time um uh enabled to uh for providers to claim. So um I think that's an extra 60 days, is that right? So yes, we we will um take that on notice.
So when's your latest data that you've got a vulnerable?
Yes, though. You can you can reasonably infer yes, given that the final budget outcome is what it is, but I don't have the specific difference between what the utilisation rate was under HCP and what the current as at today's date utilisation rate under support at home rate.
Have you got it to any date? I mean, like I except you probably have got the utilisation well what what was the utilisation um in the final quarter of um HCP?
In the final quarter of HCP.
Um what is your most recent data in terms of utilisation rate?
Oh, we've taken that one though, Senator. I genuinely don't have it in front of you.
You don't even know the date that you've got it to. I mean I'm I I understand you may not have the number, but you don't you don't you it's not to the 30th of June or the 31st of March?
We could we could reasonably produce to the 30th of June. Um and then we might the figure on the 30th of September would then relate back to um what the utilisation rate was at the 30th of June because, as we've explained previously, as Mr. Stewart just mentioned the impact of the two-month additional claiming period. So we can produce you a number uh you know, as at today's date, that would probably be a very good indication of utilisation was at the end of the financial year.
Yeah. Okay. Um there's been data produced by the sector that is suggesting that the cost of service type on average is increased by about 38%, and no doubt you'll tell me that's because of the 10% cap on um management fees that now is built into the cost of the delivery of the service. But can you confirm that in terms of what the customer sees in terms of the price of a service type has on average increased by 38%?
So we've done um we've done uh some work on support at home assurance on the pricing. Just try to get Mr. Day to answer your question.
Just well, Mr. Day is coming to the table though. Um you're right, Senator, there is a completely different price in contract under support at home, so it factors in um you know administrative cost, travel costs, uh the cost of transition, a whole range of other things. So it is a little difficult to compare light for light with HCP.
Um obviously we only had uh published prices for I think it was five service types under HCP. We've recently released some national pricing information about support at home prices, so happy to provide on your notice what we can against those data points.
So I I've just given you sort of context in why I'm asking, is that um I understand that obviously the the changes in relation to package management and plan management have have uh have had an impact on the the um service type costs. Um but we're also hearing from the sector um that because of the under utilisation of packages and and they're saying that they've dropped from you know 85, 86 per cent down to as low as 62 per cent is um one of the numbers that we've seen. It's a significant reduction in the number of services that are being provided by providers that they are having to put their prices up simply in order for them to be able to break even. And I note from your annual report that you dropped late yesterday, um your report acknowledges that um you know service providers, you know, um their net earnings before tax um is pretty much line ball on average, so that means there are significant number of home care providers that are probably operating as of in in negative territory. So I'm just trying to understand what work you're doing to ensure the ongoing viability of the service providers and the sector. Um course we don't want to see older Australians paying any more than they need to, but at the end of the day, they won't be paying anything at all. If there isn't a sector there that's viable in order to be able to provide these services. So it is a we're hearing very dire um stories. The information that you've provided me gives me no confidence that you're really on top of the numbers as yet because you've taken so much on, and I just be very keen to understand if you can, in the context of what I've just said, as soon as possible, unpack because it is your annual report that reports that providers are at the edge on average at the edge of viability, and it all sits around what's happening here in terms of utilisation and funding. So that's the context in which I'm asking the question.