Following recent aged care sector reforms passed by Parliament, the AICD has updated its guidance – Governing for quality aged care – A director’s guide. On 5 March, the AICD is also hosting a webinar - Understanding the Aged Care Act 2024 – A director’s guide to key reforms. Members can register for the free recording here.
In November 2024, once-in-a-generation aged care reforms passed Parliament, including new duties applying to directors (responsible person duty) and a new duty applying to providers linked to the standard of care provided to older Australians (registered provider duty).
To support directors in navigating the new statutory obligations in the aged care sector, the AICD has updated its guidance – Governing for quality aged care – A director’s guide. The guide will assist boards and providers in meeting their obligations under the registered provider duty, Code of Conduct and the Statement of Rights. It also highlights key governance ‘red flags’ and provides questions for directors to ask themselves and their management teams.
The revised guide outlines key steps for boards to take to meet the following:
- Responsible person duty (applies to board directors, senior executives and managers)
- Registered provider duty (applies to providers)
- Statement of Rights (applies to providers)
- Code of Conduct (applies to board directors, providers, and aged care workers, including volunteers)
Introduction to the Guide
The findings and recommendations of the Royal Commission into Aged Care Quality and Safety have driven significant reform, fundamentally reshaping the governance and management of aged care providers.
In two significant legislative packages in 2022 and 2024, the Aged Care Act 2024 placed the rights of older Australians receiving aged care services at the centre of the system. These changes also impose direct accountability on directors for the quality and safety of aged care services.
While directors may not participate directly in service delivery, they are responsible for maintaining clear oversight of the quality of services on the ground. This approach is essential for providers to meet their duties and for directors to fulfil their separate responsible person duty.
Client centred care goes beyond avoiding harm; it encompasses kindness, encouragement, and an understanding of the unique challenges faced by clients at their different life stages. The benchmark has shifted and community expectations are high. As such, it is imperative to meet clients where they are, aligning services with their needs.
Outlined below are key principles for aged care boards to embrace in navigating these challenges:
- Clarify the organisation’s purpose and the desired outcome for clients.
- Actively engage clients to amplify their voices.
- Place quality of care and desired client outcomes at the forefront of decision making.
- Rethink care and clinical governance.
- Establish effective governance and board composition practices.
- Promote a culture that attracts people with the required skills and a mindset for improvement.
Key questions for directors include:
- Has the board assessed the finance and workforce implications of reforms to residential care and home care and what impact this will have on clients?
- How does the organisation involve client voices in developing and evaluating their care and services?
- How does the organisation allocate resources to ensure areas critical to client outcomes are sufficiently funded and supported?
- Is the organisation performing well against the eleven National Aged Care Mandatory Quality Indicators? If not, why not?
- Does the board have the right skills mix that understands the complexity of delivering care and services to older people?
Join us for our dedicated aged care act webinar
On 5 March, the AICD is hosting a webinar - Understanding the Aged Care Act 2024 – A director’s guide to key reforms – featuring an expert panel including Penelope Eden (Partner, MinterEllison), Rosina Hislop FAICD (Chair, ECH), Jason Howie GAICD (Partner, Pride Aged Living), and Jason Kara (Chief Executive Officer, Catholic Health Australia). The panel will explore the following changes:
- Embedding a rights-based approach focused on the rights of older Australians.
- Enhanced obligations for providers to uphold care standards.
- The Support at Home framework, replacing the home care packages system.
- A revamped funding model for residential care commencing July 2025.
- Expanded regulatory powers for the Aged Care Quality and Safety Commission.
Members can register for the free recording here.
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