Will the Dementia Supplement funding run out soon?
October 29, 2013 | Aged Care Management
The Dementia and Severe Behaviours Supplement was brought into effect from 1 August 2013 for eligible residents living in Residential Care. A budget of $41m over 5 years has been allocated for this supplement (Source: HammondCare). The additional supplement of $16.15 per day (or $5,894.75 annually) per resident recognises the added costs associated with caring for people with dementia and mental health conditions.
Now that the supplement has been available for over 10 weeks we have had a look to see how many Providers are being paid under this new initiative.
How do I read the chart and why is it important to our organisation?
At Mirus Australia we love data. Data provides us with an easy to read story about the past, the now and a glimpse into the possible future. This is what we are currently seeing:
- The red line represents the total funding ($41m) allocated for the supplement.
- The blue dotted line shows the rate at which the funding should be allocated to allow the budget to last for 5 years.
- We have observed how many of our clients are claiming this funding. The green line shows how much funding is forecast to be spent on this supplement for the currently lodged claims.
What this means
If we take ONLY the claims that have been lodged by the end of Sept 2013 and assuming that they are paid in full for 12 months the total cumulative spend by August 2014 is forecast to be c.$50m.
See where the red and green lines cross over? Based on the current dementia supplement claims being paid by the Department of Social Services, the funding may be used up by April 2014, that’s three (3) years faster than anticipated…
In reality, organisations are likely to continue to renew and identify additional residents who qualify for the supplement resulting in an even greater total spend over the 5 year period.
How is this story important for your residents and organisation?
Mirus Australia have already worked with large and small organisations to provide a shortlist of residents that may eligible for the supplement. Contact us to find out how to get your shortlist today.
Call Simon or David on 02 8823 3140, alternatively email email@example.com
- 5.3% of residents in the industry are currently being paid the dementia supplement. This is based on extrapolating the Mirus Australia sample of 30,974 beds as at September 2013. Our sample represents 19% of the industry
- The number of residents being paid the supplement as at September 2013 will be paid for a full 12 month period and no new claims will be submitted after September 2013.
- The funding will be allocated equally during the 5 year term.