Some providers of home care for senior Australians are being accused of trying to coerce kickbacks from suppliers of services and equipment including mobility aids. The ABC has obtained emails with direct requests for rebates and payments which suppliers say eat into already slim profit margins.
00:00We've seen emails from home care package providers, and this is the group that sits above the industry and manages the government money that is put into the industry to basically help people stay at home during the years when they otherwise would be put into retirement villages or nursing homes.
00:22So their fee structure has been altered dramatically under recent changes to the Aged Care Act, and as a result of that, they can't charge the kind of management fees, money management fees, over the packages.
00:38So that has been reduced from about 30% down to no more than 10%.
00:44So as a result of that, it would appear that they've been trying to recoup the money elsewhere, and by doing to do so, they've been approaching some service providers, and in particular, the companies that provide equipment like wheelchairs and trolleys and, you know, the kind of infrastructure that's put into a home to help retirees to basically live at home.
01:08And they've been asking them, they've been asking those companies for cash rebates on the contracts.
01:14In some cases, it's a percentage of the amount of business that's put their way.
01:19In other cases, it's, there's a certain percentage under a limit, say $1,000, and then a percentage above a limit of $1,000.
01:26So it's a reasonable amount of money, especially when you consider the amount that's involved here for, you know, to actually provide these, put these services into the home.
01:37Now, you know, this is a massive business we're talking about, because, you know, the government has just, well, it's put up, it's the money about 30% this year, and about $8.8 billion flows into the home package area.
01:53So it's a substantial amount of money that's involved here.
01:57And I think it's a case of unintended consequences, really, because it would appear that the government, having put all this extra money into the system, has decided to ensure that it's not just hoovered out by, you know, companies managing the client's welfare.
02:13And so they've put these, breaks, these limits as to how much can be taken out.
02:18And at the same time, they've also charged clients at the other end, you know, they'll have to pay some fees as well.
02:25So clearly the government is trying to make this whole system more sustainable in the long term, and they want to protect it.
02:31But this is something that's kind of slipped through the net here.
02:34So clearly the government is trying to make this whole system more sustainable in the long term.
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