Aged care update on governance – Are you ready for 1 December 2023?

By Alison Choy Flannigan, Partner, Co-Lead Health & Community

Governance changes

From 1 December 2023, providers approved before 1 December 2022 must:

• ensure their governing bodies are made up of independent non-executive members that have a mix of skills and experience and that at least one member has experience in providing clinical care;
• set up and continue a quality care advisory body;
• annually offer to set up a consumer advisory body;
• prioritise older Australians (not the holding company), if the organisation is a wholly owned subsidiary;
• ensure their staff have the appropriate qualifications, skills and experience; and
• submit their completed annual Provider Operations Report to the Department of Health and Aged Care by 31 October each year. The first reporting period is 1 July 2022 – 30 June 2023 and is due by 31 October 2023.

Governing bodies have the ultimate responsibility and influence over the care and service provided to older Australians. They need the right mix of people to drive the continuous improvement processes that deliver the high quality of care and services that older Australians deserve.

Providers must ensure their governing body:

• has a majority of independent non-executive members and
• at least one member with experience in providing clinical care.

The following approved providers are not required to meet the governing body composition requirements:

• state or territory approved provider (including a state or territory authority), or a local government authority;
• providers with a governing body with fewer than five members and who provide care to fewer than 40 recipients; and
• providers that are an approved Aboriginal Community Controlled Organisation (ACCO).

Read further information.

Key personnel

Key personnel play a vital role in your organisation and ensure the delivery of safe, quality care and services.

Key personnel are as defined in section 8B of the Aged Care Quality and Safety Commission Act 2018 and include people who:

• are responsible for the executive decisions of a provider, or
• have authority or responsibility for, or significant influence over, planning, directing, or controlling the activities of a provider, or
• are responsible for the nursing services provided by the aged care service and hold a recognised qualification in nursing, or
• are responsible for the day-to-day operations of the aged care service.

Due diligence in gathering information and assessing your staffs’ ongoing suitability is essential.

Read further information.

What do you need to do?

We have been very busy assisting approved provider clients to:

• review and amend their Constitutions;
• set up terms of reference for the quality care advisory body and consumer advisory body;
• prepare statutory declarations for key personnel; and
• assist with advising what should be included for the Provider Operations Report.

If you have not already prepared for these changes, you better get your skates on!

For further information, please contact Alison Choy Flannigan.