Changes set off cash conflict between providers and suppliers

ABC NEWS (Australia)

The ABC has uncovered kickbacks in the aged care sector that are banned in other government-run programs. We've seen emails showing some providers of home care packages are trying to coerce commissions from equipment suppliers.

Transcript

00:00Kevin and Sue Dawson are determined to stay in their home, thanks to the Federal Government's

00:08home care package.

00:09Staying at home is paramount from the point of view of being able to care for one another

00:16and try to live a normal life.

00:19But a fight is brewing between the firms that supply vital equipment like wheelchairs to

00:24couples like the Dawson's and the service providers that manage home care packages.

00:28The suppliers, the manufacturers, distributors of assistive technology are being pressed

00:35by a number of service providers, people that hold the individual's funds to provide kickbacks,

00:42incentives, commissions, it's borderline illegal.

00:46Under the changes introduced last month, home care package providers have had their fees

00:51slashed from around 30% of a recipient's funds to just 10%.

00:56Some are now trying to recoup that lost money.

00:59The ABC has obtained emails with direct requests for rebates and payments in exchange for being

01:05put on an exclusive supplier list.

01:08The suppliers argue that such demands eat into their already slim profit margins and ultimately

01:14limit the choice for those most in need.

01:17Home care is big business.

01:18855 home care providers handling $8.8 billion of government money.

01:25These kinds of payments are explicitly banned from other government programs.

01:29The NDIS states that you cannot offer commissions kickbacks.

01:35They're also very concerned about the conflict of interest.

01:38a growing problem for an ageing population.

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