In addition to daily fees, accommodation fees, means tested fees, fees for extra services , some nursing homes are charging an extra fee such as “Asset Replacement Charge” as well, that is not recouped until the recipient leaves the facility. This seems to amount to an exit fee (of around $16-20,000), for which the recipient derives no benefit. Can you clarify the legality of these fees?
Hello everyone,It is actually the great news I heard so far.
Hi Cooks,That is excellent news. We heard that most of the operators were refunding the ARC charge. We’re please you were with an operator who did. Phew! Well hopefully the cuts aren’t felt too much.Thanksthe
Good news occurs sometimes. The court case has been judged and the ARC charge has been dismissed as non complying with the legislation. L:etter from the facility comfirming that the fee will no longer be charged, and email confirms that those who have already been charged, will be refunded. Only down side is that the facility now wonders what cuts may be instigated as a result.
Can the debt that is being accumulated daily for this fee be put against assets i.e the RAD out of which it will be taken at the end of the placement (when he leaves the facility - passes away)? It seems to me that it is essentially a debt that is b
We believe that to be the case.
Thank you. So it actually means that they can charge it because the legislation doesn’t say they can’t? Until a court determines ot
Some aged care homes do charge the Asset Replacement Charge. This charge can be referred to by different names including Capital Refurbishment Fees. We believe Regis is an example of an aged care home that include this charge but other aged care homes may do so also.
Regis describe the "a fixed fee payable for a capped period by all residents except those who are fully supported or on respite. The ARC is a charge for the renovations, refurbishment, reinstatement of fixtures, fittings and infrastructure, rebuilding and construction of or at our facilities across Australia.
In September last year, the Department of Health issued a bulletin in which they advised that they did not consider the charging of capital refurbishment type fees to be supported by the legislation. Whilst the Departments interpretation of the legislation is not binding (in that, they are not a Court or Tribunal) it articulates their position in respect of the charging of these fees. We understand the matter is currently before the court for determination.
We hope this helps clear u