Some registered providers of funded aged care services are uncertain about how to meet their new associated provider obligations. This article explores some of the key concepts that must be understood by registered providers to comply with these new obligations.
What is an associated provider?
An associated provider is an organisation or individual that delivers funded aged care services on behalf of the registered provider to consumers that the registered provider has agreed to deliver those services to.
It is common for registered providers to engage many different organisations and individuals to be involved in service delivery, and not all of them will fall within the narrow definition of an “associated provider”. The following are examples of common contracting situations where the organisation/person is generally not an associated provider:
Contractors supplying services to the registered provider’s organisation, not the consumer (e.g. training, accounting, labour hire).
Contractors delivering services that are not funded aged care services to consumers.
Individuals who fall within the definition of an “aged care worker”, rather than an associated provider.
How should providers manage associated providers?
Providers should take the following steps:
Identify all service providers: Make a list of all organisations or individuals who provide the business with good or services.
Identify which of these are associated providers: Assess each service provider to determine whether they meet the definition of an “associated provider”. Some arrangements may clearly fall inside or outside of this definition. Other arrangements may be less clear and open to interpretation. If in doubt, seek legal advice. It is important to get this classification right to avoid unintentional non-compliance.
Meet your associated provider obligations: Identify all your associated provider obligations and take appropriate steps to ensure these are met. These obligations include reports to the Aged Care Quality and Safety Commission and monthly statement disclosures to clients. Again, if in doubt, seek legal advice on what your obligations are and how to practically meet them.
Manage risk and liability: Providers are responsible for the quality, safety and compliance of services that are delivered by associated providers on their behalf. If something goes wrong, this means the registered provider may be liable and could incur significant loss as a consequence of the associated provider’s acts or omissions. Providers should take all appropriate steps to manage this potential risk and liability exposure. This should include appropriate risk management systems and insurance, along with robust service contracts that are specifically drafted for aged care service arrangements, with terms that reduce risk and support ongoing compliance.
This article contains general guidance only and is not an exhaustive list of all issues that need to be considered.
Need help?
Our award-winning aged care legal team has helped other registered providers identify their associated providers and manage their obligations – including by providing strategic advice and new service contract templates. Contact us for an obligation-free quote.
This blog post does not constitute legal advice and should not be relied upon as such. It is a general commentary on matters that may be of interest to you. Formal legal or other professional advice should be sought before acting or relying on any matter arising from this communication.
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