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  • Preparing for reform - Funding and Business Model: ensuring providers are sustainable in all markets

    The following questions have been taken from the Department of Health and Aged Care's Fact Sheet 1.

    Steps and considerations to help you prepare - Funding and Business Model: ensuring providers are sustainable in all markets

    An indicative model for the new program proposes a mixed funding model for providers with a combination of activity-based payments in arrears and grants.

    • Will your organisation be sustainable under the new arrangements with activity-based payments at set prices combined with supplementary grants for some service types and providers in thin markets?
    • Review your business against Commonwealth Home Support Program (CHSP) unit price ranges for different services – could your business operate at prices within those ranges, and would it be sustainable?
    • Is your business model suitable for the future, are there any changes or adjustments needed?
    • Do you need to review your operating structure or model now in preparation and note any risks?
    • Are you operating in a thin market?
    • If so, would you need supplementary grant funding and how would you explain this in a grant application?
    • What level of funding would you need as a supplementary grant, if you received activity-based funding for services delivered at CHSP unit prices?
    • If you have access to a pool of funds to use across your clients in addition to client budgets, how would you prioritise its use?