The Federal Government announced in the 2016/2017
budget10 that it will achieve efficiencies of $1.2
billion over four years through changes to the scoring matrix of
the Aged Care Funding Instrument (ACFI) that
determines the level of funding paid to aged care providers. The
Government will also reduce indexation of the Complex Health Care
component of the ACFI by 50 per cent in 2016/17 and establish a
$53.3 million transitional assistance fund to support
These changes expand on the refinements made through the 2015/16
Mid Year Economic and Fiscal Outlook (MYEFO)
measure titled Aged Care Provider Funding — revision to the
Aged Care Funding Instrument Complex Health Care Domain.
This measure is part of the Government's response to the
continued higher than expected growth in ACFI expenditure, which
has increased by a further $2.5 billion over the forward estimates
since the 2015/16 MYEFO.
The ACFI is a resource allocation instrument. It focuses on the
main areas that discriminate care needs among residents. The ACFI
assesses core care needs as a basis for allocating
The ACFI focuses on care needs related to day to day, high
frequency need for care. These aspects are appropriate for
measuring the average cost of care in longer stay
While based on the differential resource requirements of
individual persons, the ACFI is primarily intended to deliver
funding to residential aged care providers. When completed on all
residents in the facility the ACFI determines the overall relative
care needs profile and the subsequent funding.13
The ACFI consists of 12 questions about assessed care needs,
each having four ratings (A, B, C or D) and two diagnostic
sections. While the ACFI questions provide basic information that
is related to fundamental care need areas, it is not a
comprehensive assessment package.14
The ACFI User Guide is available at:
The changes mean that Approved Providers need to be particularly
vigilant in relation to the appropriate assessment of care needs
and their claims for payment and preparing appropriate
documentation should they be audited.
The implementation of the recommendations may deliver significant benefits to medicine and medical device industries.
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