Consultation on a Proposal to Fund State Subsidised Clients in Aged Residential Facilities using a Section 88 Notice Pursuant to the New Zealand Public Health and Disability Act 2000.

Consultation on a Proposal to Fund State Subsidised Clients in Aged Residential Facilities using a Section 88 Notice Pursuant to the New Zealand Public Health and Disability Act 2000.

Date of publication: September 2001

Aged residential services comprise nearly half a billion dollars of disability spending for the Ministry of Health. This sector includes over 870 facilities taking care of approximately 19,000 state subsidised clients. This is a significant and important sector for the government.

The Ministry of Health currently contracts individually with each facility for the delivery of aged residential services. As a result of this contracting regime over the last 8 years, there are currently 4 separate service specifications in use for what is essentially the same service and over 500 different prices applying. The current range of prices is also unacceptably wide and inequitable.

The Ministry of Health is proposing to move away from having individual contracts with each provider of aged residential care services. These contracts are a mechanism by which the government funds individuals who are assessed as needing residential care. The funding is by way of a subsidy which is associated with an individual client. The Ministry of Health is proposing to move to a section 88 notice that it believes is a more appropriate way of paying the client subsidy and will effectively bring the whole country onto a single funding arrangement.

The documents attached below are a copy of the consultation document and a draft of the section 88 notice.

Submissions have now closed.

Document availability

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Consultation document

(PDF, 1275 kB)

Draft of the Section 88 Notice

(PDF, 705 kB)

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