CHSP Provider Community of Practice Hub

The Department of Health and Aged Care has provided an update on the Commonwealth Home Support Programme (CHSP) 2024-25 extension.

The fact sheet can be read here. This fact sheet outlines what existing CHSP providers need to know about the CHSP 2024–25 Funding Extension Grant Opportunity and other program updates. Key points include:

• All providers will be issued with a variation to their current grant agreement for the CHSP 2024-25 extension. In January, CHSP providers should have received a letter from the Department outlining their organisation's proposed funding and outputs. The letter also scoped whether any variations to existing arrangements (funding, location, services, unit prices and exits) were required and sought providers' intent to continue delivering services in 2024-25. Only providers who requested changes through the January 2024 process or have MMM loading to be applied are eligible for consideration of changes and the Department will process these requests for the 2024-25 contract adjustments. It is anticipated that formal offers will be made from the end of April 2024. A visual timeframe is provided within the fact sheet.
• In 2024-25, CHSP providers will retain grant agreements similar to current arrangements. Fixed monthly payments in arrears return based on 1/12th of the toal value of the grant agreement, following the payment changes in 2023-24 for the Fair Work Commission processes. Monthly performance reporting will continue through the Data Exchange. Reporting will be due 10 usiness days after the end of the month. Nationally consistent unit price ranges with the exceptions of Assistance with Care and Housing (ACH) Hoarding and Squalor. and Goods, Equipment and Assistive Technology (GEAT) and Home Modifications. which are reported in dollars. There will be additional loading for service delivery in remote and very remote areas. Compliance activities that may result in certain grant agreements being reviewed and varied by reducing the amount of Commonwealth funding paid in 2024-25 to account for unexpected funds from previous years, to better reflect performance or to address local service needs.
• The 2024-25 extension is not an opportunity to request additional funds. Providers will not be allowed to roll over any unspent 2023-24 fundings into 2024-25. The Department is looking at growth funding opportunities for 2024-25 and further information will be available in the coming months. Providers who applied and were successful for the FWC CHSP Base Funding Grant will have these funds included in their CHSP grant agreement from 1 July 2024.
• From 1 July 2024, the CHSP National Unit Price Range will be indexed and adjusted accordingly. See the Table within the fact sheet for the National Unit Price Ranges. The unit price increases will automatically be applied to the CHSP 2024-25 proposed funding and outputs as outlined in the formal letter of offer to providers. In-scope CHSP providers will have their unit price range adjusted if they were successful in applying for the FWC CHSP Base Funding Grant. This FWC funding will be automatically applied to their CHSP base funding from 1 July 2024. Stage 3 of the Aged Care Work Value case is still being considered by the FWC. The outcome may impact CHSP providers during 2024-25. Further advice will be provided following the FWC decision. In the meantime, the National Unit Price Range does not reflect the impact of stage 2 of teh Aged Care Work Value case, and associated grant funding awarded to some CHSP providers. Unit prices will be reviewed once the Aged Care Work Value case is finalised, with a new National Unit Price Range expected to be in effect from 1 July 2025.
• The Department has been working with providers to fully understand the increased costs of service delivery in remote and very remote areas, compared to metropolitan, regional and rural areas. Since 1 July 2023. a loading of up to 40% was made available for providers delivering 50% of more services in remote and very remote areas (MMM 6 and 7). This loading will continue to be applied in the 2024-25 Extension for eligible organisations.
• The current pricing architecture for CHSP community transport does not take into consideration service location or the service delivery model. The Department is undertaking a pilot study for transport services between now and 30 June 2027. The core objective of the pilot is to develop and test a more accurate way of accounting for service delivery components, and their relationhip to costs, including consideration of the social captial elements and complexity. The pilot aims to develop. test and evaluate alternative evidence-based funding policies for CHSP transport. ahead of CHSP transitioning to the Support at Home Program no earlier than 1 July 2027. Click here for information on the Pilot.
• Specialised Support Services (SSS) have been worked with to ensure the services being delivered are aligned with the most appropriate service type. Clinical services are not provided under SSS. Older people requiring clinical services can have these supports delivered under the CHSP Nursing and/or Allied Health and Therapy service types or alternate programs funding by the Government or other means. If an organisation delivers clinical services under SSS they should contact their Funding Arrangement Manager to discuss their funding allocation under an alternative service type.
• Ongoing compliance activities are undertaken and examine service delivery and performance across all funded CHSP providers. Where providers have historical under-delivery, active monitoring will continue. This information will inform potential reductions of 2024-25 funding where significant under-delivery against the contracted outputs is not justified. We are in discussions with CHSP providers engaged in the compliance process about their 2024-25 funding.
• Flexibility provisions will continue in 2024-25. The flexibility provision applies across all CHSP service types and sub-programs, with the exception of SSD and ACH. Service providers that use flexibility provisions to establish funded service types in an Aged Care Planning Region (ACPR) must keep a minimum of a 50% footprint for the relevant service type in the ACPR. This ensures those services remain in the ACPR and align in part to the grant agreement. The Department will continue to monitor the flexibility provisions holistically across contracted services in 2024-25 to gauge compliance and will take into consideration unit price variance between service types delivered.
• If a provider plans to discontinue delivering CHSP services in 2024-25, they must notify their Funding Arrangement Manager and the department in writing of their proposal to transfer all or part of their services as soon as possible and include a draft Transition Out Plan. The proposed withdrawal date must be a minimum of 4 months from the date of the first draft Transition Out Plan. CHSP providers must negotiate with the department on a suitable transition date with the replacement organisation. Funding Arrangement Managers can provide a copy of the Transition Out Plan template.
• The CHSP Manual will be updated prior to 1 July 2024, and will include the updated unit prices as outlined in the fact sheet. There will be no significant changes in the CHSP Manual for 2024-25.