How funding is structured under AN-ACC
May 12, 2022 | AN-ACC
The AN-ACC funding structure requires a different approach than ACFI. It is considered better for providers as it will provide a more equitable funding outcome that matches residents’ needs with the costs of care delivery.
The 3 components of AN-ACC
In the AN-ACC model, providers receive three components:
- A fixed component
- A variable component
- A one-off adjusted payment
Before a resident can be admitted, a provider will bear an element of fixed costs in operating a service. Above the fixed costs, providers are then faced with a range of variable costs. These will change in proportion to the level of care activity, and/or the number of residents a facility manages.
The three of these components represent the total payment provided.
The price the industry receives is set and managed through a mechanism referred to as the NWAU – National Weighted Activity Unit. This is a measure of health service activity which can be expressed as a unit / number against the fixed and variable components.
In this short video, Rob will step through each of the funding components of AN-ACC in more detail.
Further resources:
Maintain funding momentum by preparing for the AN-ACC transition
The AN-ACC funding model will bring several important changes to your finances, people, processes, data, and systems. Our team has been focused on the aged care sector for over a decade and we bring this experience, coupled with the combined experiences of our clients, to help you plan for these changes.
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