Aged care homes owed hundreds of millions of dollars in COVID support, say providers

With about 70 per cent of care homes estimated to be running at a loss, providers say they cannot continue to be left out of pocket.

They are blaming bureaucracy for placing numerous barriers to reimbursing providers for their expenditure. This includes insisting on separate claims for each home and outbreak and multiple agencies querying the same claim.

The Australian Government introduced COVID-19 Support Grants to help providers control outbreaks in their facilities, protecting vulnerable residents and their families, and preventing transmission with the local community.

Catholic Health Australia's Director of Aged Care Jason Kara said that the aged care sector responded strongly throughout the worst of the pandemic, with staff, consumers and their families working together to abide by strict rules to reduce infection risk.

"Unfortunately, we see that the Government has still not reimbursed expenditure from 2021/22 and 2022/23," Mr Kara said.

Providers which are claiming COVID payments include

In May Estia Health released an ASX statement which noted $21 million in outstanding COVID grant claims, $8.8 million dating from the 2021/22 financial year.

"We have a system that has almost been designed to fail. Claims worth hundreds of thousands of dollars are held up for months by the government agency querying a $100 test expenditure. Common sense tells us that this could be streamlined through paying the approved amount immediately and allowing further discussion on any small, disputed amounts to occur later," said Mr Kara.

The providers say there have been many unsuccessful attempts to work with the Government on the COVID grants program and the administration costs are taking providers away from the core business of providing care. Recent Senate estimates testimony disclosed there were 11,000 grant applications and at least half a billion dollars still to be paid to providers.

"Unfortunately, it's taking a very long time for those payments to come through. We understand there has to be a process, as this is public money. The Government has to do its due diligence, and make sure people aren't claiming for things they shouldn't, but ultimately that money should be flowing much faster," said Tom Symondson, chief executive of industry body Aged and Community Care Providers Association.

He said the association has been working with the federal government and the department to expedite the payments. "In response the government has put on extra staff to deal with the backlog, and has also implemented a streamlined process for grants under $40,000. We have continued to call for expanded streamlined processes."

Mr Symondson said there were providers who were waiting many months and in some cases more than a year for payments.

"We have an example of a provider waiting on more than $50 million. Given the current financial environment, with the majority of residential aged care providers losing money, this is incredibly serious for providers who are owed money."

The office of Aged Care Minister Anika Wells was contacted for comment.