A pause with purpose: making the most of the Aged Care Reform delay

Central to the rationale for the delay was a lack of readiness in the system for these changes – providers were not clear on the new rules of the road, service users were not clear on how changes would affect them including potential price increases, and regulators and funders were not able to give clarity on the transition to the new regime.

The deferred start date gives time to mitigate these risks to the successful roll-out of the reforms, but not without costs – extending the period of uncertainty for all involved in the system and adding up to $900m in additional costs for the federal budget[2]. More subtly, the delay risks reinforcing a culture of reactive change, where reform is something to be endured rather than embraced.

The delay has largely been well-received by stakeholders across the sector – provider advocate Ageing Australia said they were ‘relieved’ regarding the decision as the extra time would give ‘critical space’ to finalise necessary arrangements.[3] The Consumer advocate OPAN have said they ‘reluctantly’ support the delay to make sure older people who rely on the system are able to make informed decisions about their clinical care.[4]

And while the delay is necessary to avoid further disruption in the system for all participants, and therefore undermining the integrity of the reform agenda overall, the next four months must be used strategically. This is not just about operational readiness, it’s about preparing for a more consumer-driven, transparent, and accountable aged care system. That means not only updating systems and processes, but also addressing workforce pressures, improving communication with consumers, and strengthening coordination across health and community services.

This is an opportunity for the aged care sector to accelerate transformation. Specifically, we see important work to be done in:

• Developing and/or embedding updated operating models for the post reform-landscape, recognising that financially sustainable services will need to be organised and delivered differently with the new requirements;
• Stress-testing and scenario planning for the new ways of working – creating clarity on what could go wrong as a result of changes and planning to address those issues;
• Using the time to invest more in staff training and change management; and
• Creating and putting into action improvement plans to build financial resilience for the uncertain times ahead.

The delay is a gift of time. But like all gifts, its value depends on how it is used. Providers and policy makers now have an opportunity to pivot, rather than pause. The coming months offer a window of opportunity to take action and achieve transformation readiness, before the real reform begins.

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