What is the Aged Care Funding Instrument (ACFI)?

As our loved ones age, providing them with the best possible care becomes a top priority. To support this endeavour, the government offers financial assistance to aged care facilities through the ACFI program.

At its core, the ACFI is a crucial tool designed to ensure that residents in aged care facilities receive the appropriate level of care they need. This funding instrument plays a vital role in enabling these facilities to deliver high-quality care and support to elderly individuals.

In this blog post, we will take you through the ins and outs of the Aged Care Funding Instrument in a clear and concise manner. We aim to provide you with a solid understanding of how the funding works and its significance in maintaining the well-being of our elderly community members.

What is the Aged Care Funding Instrument (ACFI)?

The Aged Care Funding Instrument (ACFI) is a vital government program aimed at supporting aged care facilities in providing specialised care and services to elderly residents. It serves as a funding system that helps determine the financial assistance each facility receives to cater to the unique needs of its residents.

In simple terms, the ACFI is like a measuring tool. It assesses the care requirements and daily activities of each resident living in an aged care facility. Based on this assessment, the government allocates funding to the facility, allowing them to deliver the appropriate level of care and support to their residents.

The assessment process considers various essential factors that directly impact a resident’s well-being and quality of life. These factors include continence (the ability to control bodily functions), mobility (the ease of moving around), nutrition (proper dietary needs), cognitive ability (mental functions like memory and thinking), and other significant aspects of daily living.

Through this comprehensive evaluation, the ACFI ensures that each resident’s individual needs are recognized and addressed properly. This tailored approach helps maintain the highest standards of care for the elderly, promoting their health, comfort, and overall happiness.

It’s important to note that the ACFI funding is not directly provided to the individual residents; instead, it goes to the aged care facility. The facility then uses this funding to cover the costs associated with delivering personalised care and services to the residents.

The ACFI assessment can be carried out by various qualified care staff, including nurses and care coordinators. Their expertise and attention to detail play a crucial role in accurately gauging the care needs of each resident.

To ensure that the ACFI program remains effective and efficient, it periodically undergoes reviews and updates. One such significant change occurred in 2017, which led to adjustments in funding claims. Unfortunately, this resulted in some care homes experiencing financial strain, and there were concerns about the admission of residents with complex care needs.

As part of its commitment to improving aged care services, the Royal Commission into Aged Care Quality and Safety has been investigating the ACFI system. The aim is to assess its overall effectiveness, scrutinise funding allocation methods, and examine whether there are any potential issues, such as overstatement of residents’ care needs.

Understanding the Aged Care Funding Instrument (ACFI) is essential for both the families of elderly residents and the aged care facilities themselves. It ensures that the right level of care and support is provided to our loved ones as they embark on this chapter of their lives, ensuring their comfort, dignity, and well-being are upheld.

Factors considered in ACFI assessment

The Aged Care Funding Instrument (ACFI) assessment process is a crucial step in determining the appropriate level of funding for aged care facilities. During this assessment, various essential factors are carefully considered to understand the unique care needs of each resident. Let’s explore these factors in detail:

Continence

Continence refers to an individual’s ability to control their bodily functions, particularly when it comes to using the restroom. The assessment takes into account whether a resident requires assistance or specialised care related to continence management.

Mobility

Mobility assesses how easily a resident can move around and perform daily activities. It includes evaluating their ability to walk, stand, and transfer from one place to another. The assessment identifies if a resident needs support or aids like walking frames to maintain their mobility.

Nutrition

Proper nutrition is essential for maintaining good health and well-being. The ACFI assessment examines whether a resident requires assistance with eating, dietary support, or specialised meal plans to meet their nutritional needs.

Cognitive ability

Cognitive ability focuses on an individual’s mental functions, such as memory, thinking, and decision-making. The assessment evaluates whether a resident may need support or specific care due to cognitive challenges, like dementia or memory loss.

Skin integrity

Skin integrity involves the condition of a resident’s skin and any risk of developing pressure sores or other skin issues. The assessment identifies if a resident needs extra attention or preventive measures to maintain healthy skin.

Behaviour

Behavioural factors consider any challenging behaviours a resident may exhibit. The assessment helps determine if specialised care or strategies are required to address behavioural concerns and ensure the safety and well-being of both the resident and others.

Complex health care

This factor considers any complex medical conditions or healthcare needs a resident may have. It includes chronic illnesses or conditions that require specialised medical attention and care.

Medication management

The assessment assesses whether a resident requires assistance with medication management, including help with administering, organising, or monitoring medications.

Each of these factors is carefully evaluated by trained and qualified care staff, such as nurses or care coordinators. The assessments are conducted with utmost attention to detail to ensure accuracy and fairness.

By taking these essential factors into account, the ACFI program aims to provide aged care facilities with the necessary resources to deliver personalised and top-quality care to their residents. This tailored approach ensures that each resident’s unique needs are met, promoting their health, happiness, and overall well-being throughout their stay in the facility.

Holding the hand of a senior person.

ACFI changes in 2017 and their impact

In 2017, significant changes were made to the Aged Care Funding Instrument (ACFI) program, which had an impact on aged care facilities and their residents. 

Let’s explore these changes and their effects:

Downgraded claims

One of the key changes in 2017 involved downgrading certain claims made by aged care facilities for funding. This means that some facilities received reduced funding compared to previous years for residents with specific care needs.

Under-funded care homes

As a result of the downgraded claims, some aged care homes experienced financial strain. The reduced funding affected their ability to provide the same level of care and support to their residents, potentially compromising the quality of services.

Reluctance to admit complex care needs

The changes in ACFI funding also led to concerns about admitting residents with complex care needs. Some facilities may have been hesitant to admit individuals requiring higher levels of care due to the potential financial implications.

Impact on residents

Residents who required specialised care and services may have faced challenges due to the reduced funding for their care needs. This could have affected the availability of resources and support tailored to their specific requirements.

Industry response and advocacy

The changes sparked a response from the aged care industry and advocacy groups, who highlighted the potential negative effects on elderly residents and the quality of care provided.

Review and evaluation

In light of the impact of the changes, the ACFI program underwent further review and evaluation to assess its effectiveness and ensure equitable funding allocation.

Continuous improvement

The ACFI program is committed to continuous improvement. Feedback from aged care facilities, care staff, and other stakeholders is used to identify areas for enhancement, ensuring that the funding system evolves to meet the needs of the ageing population.

Balancing funding and quality care

The challenge lies in striking a balance between providing adequate funding to support high-quality care for elderly residents and maintaining the financial sustainability of aged care facilities.

The changes to the Aged Care Funding Instrument in 2017 prompted discussions about how best to allocate funding to support elderly residents in aged care facilities. The ACFI program’s ongoing evaluation and willingness to address concerns demonstrate a commitment to delivering the best possible care and support to our ageing population. By continuously improving the funding system, the goal is to ensure that elderly individuals receive the care and dignity they deserve in their later years.

A person taking care of an elderly person sitting on a wooden chair.

The Royal Commission and ACFI

The Royal Commission into Aged Care Quality and Safety is an important investigation initiated by the Australian government to examine and improve the aged care system in the country. As part of its scope, the Royal Commission is closely scrutinising the Aged Care Funding Instrument (ACFI) and its impact on aged care facilities and their residents. 

Let’s understand the significance of the Royal Commission’s examination of the ACFI:

Investigating effectiveness

The Royal Commission is thoroughly investigating the effectiveness of the ACFI program in providing financial support to aged care facilities. It aims to ensure that the funding system adequately meets the needs of elderly residents and promotes the delivery of high-quality care.

Concerns about funding allocation

One key aspect of the investigation is examining the allocation of funding through the ACFI. The Commission is exploring whether the funding distribution is fair, transparent, and equitable, considering the varying care needs of residents across different facilities.

Incentives and overstating care needs

Another concern being investigated is whether the ACFI system inadvertently incentivizes aged care providers to overstate residents’ care needs to secure higher funding. The Commission aims to address any potential discrepancies in the assessment and funding process.

Resident-centred approach

The Royal Commission seeks to promote a resident-centred approach in aged care. This means ensuring that funding decisions prioritise the well-being and comfort of elderly residents, ensuring they receive the care and support they require.

Improving ACFI and aged care services

The ultimate goal of the Royal Commission is to identify areas for improvement in the ACFI program and the overall aged care system. By addressing any shortcomings, the Commission aims to enhance the quality of care provided to elderly individuals.

Stakeholder engagement

The Royal Commission encourages engagement from all stakeholders, including aged care facilities, care staff, residents, families, and advocacy groups. Gathering diverse perspectives is crucial in comprehensively understanding the complexities of the aged care landscape.

Policy recommendations

The Commission’s findings and recommendations have the potential to influence policy changes and reforms in aged care funding and services. It provides an opportunity for the government to enhance support for ageing Australians and ensure their well-being and dignity.

Through the Royal Commission’s examination of the ACFI program, Australia aims to strengthen its aged care system and create an environment where elderly individuals can age with dignity, respect, and high-quality care. The insights gained from this investigation have the potential to shape positive changes that benefit both aged care facilities and the cherished residents they serve.

Proposed changes and future of ACFI

As a result of the Royal Commission’s investigation into the Aged Care Funding Instrument (ACFI), several proposed changes are being considered to enhance the program and shape the future of aged care funding. 

Let’s explore these potential improvements and their impact:

Fairer funding allocation

One of the key proposals is to ensure fairer funding allocation through the ACFI. This involves refining the assessment process to accurately reflect residents’ care needs, thereby providing appropriate funding to aged care facilities.

Resident-centred approach

Emphasising a resident-centred approach remains a central focus in the proposed changes. By prioritising the well-being and comfort of elderly residents, the ACFI program aims to deliver personalised and compassionate care.

Transparent and accountable system

The proposed changes seek to enhance transparency and accountability in the ACFI program. This includes measures to ensure that funds are appropriately directed to provide care and support for residents, promoting financial integrity.

Addressing overstating of care needs

Measures are being explored to address concerns about overstating residents’ care needs to secure higher funding. The goal is to create a system that discourages such practices and ensures assessments accurately represent residents’ actual care requirements.

Continuous review and feedback

The future of the ACFI program involves ongoing reviews and feedback from aged care facilities, care staff, residents, families, and other stakeholders. This dynamic approach allows for continuous improvement and adaptation to meet changing needs.

Support for complex care needs

Proposals are being considered to better support aged care facilities that admit residents with complex care needs. Ensuring adequate funding for specialised care promotes a higher quality of life for those requiring more comprehensive assistance.

Collaboration and policy reforms

The future of the ACFI program relies on collaboration between the government, aged care providers, and advocacy groups. Together, they aim to shape policy reforms that enhance aged care services and funding support across the country.

Empowering aged care facilities

The proposed changes aim to empower aged care facilities to continue providing top-quality care. Adequate funding allows facilities to invest in staff training, advanced equipment, and tailored services to meet residents’ diverse needs.

The proposed changes and the future of the ACFI program hold great promise in strengthening aged care services in Australia. By prioritising the well-being of elderly residents and fostering financial transparency, the program seeks to create an environment where ageing individuals receive the dignity, respect, and care they rightfully deserve. Through collaboration, continuous improvement, and a resident-centred approach, the ACFI program is positioned to play a vital role in supporting ageing Australians and ensuring their golden years are filled with comfort and compassion.

Happy old woman sitting on a couch in a nursing home.

The ACFI program stands as a vital pillar in ensuring that our elderly loved ones receive the care and support they deserve in their later years. Let us embrace this commitment to compassionate care, making a positive difference in the lives of those who have contributed so much to our communities. Together, we can create an environment where elderly individuals can age gracefully, knowing they are cherished and valued.