STEP 5
Package Provider Cost Components
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STEP 5.1
What are the different Package Provider cost components?
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STEP 5.2
What is the Package Management fee
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STEP 5.3
What are Care Management fees?
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STEP 5.4
What are the average costs?
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STEP 5.5
What are service and support provisions?
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STEP 5.6
Why is it good to have a contingency?
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STEP 5.7
Why do I need to pay an exit fee?
What are service and support provisions?
Service and Support Provisions
There are costs associated with delivering the services in your care plan. These will be related to the actual hours of care you receive.
Some providers load their fee into those hourly rates – a practice known as “loading the hourly rate”. For example a Physiotherapist could charge $35 per hour but a provider may load that fee with an additional cost and charge out the service at $40 or even $45 per hour.
It could be argued that it would be cheaper for you to find your own Physiotherapist. But it is wise not to make assumptions. Ask your proposed service provider the question outright and also make some calls to similar services to see what hourly rate they charge so you can compare.
It has been estimated that package providers usually charge around 1.5 to 2 times the casual hourly award wage for a home care employee. It can be helpful to know how others are generally splitting their Home Care Packages.
Most common support types assessed proportion of support expenditure
*Summary of average hours of service per package per fortnight by service type as a proportion of
total hours provided for FY 2018-19
| Services | Level 1 | Level 2 | Level 3 | Level 4 |
|---|---|---|---|---|
| Care Management | 21% | 14% | 14% | 11% |
| Nursing Care - Registered nurse | 1% | 1% | 1% | 2% |
| Personal Care | 16% | 19% | 26% | 33% |
| Cleaning and household tasks | 31% | 29% | 21% | 17% |
| Social Support, shopping services, community access | 15% | 19% | 18% | 16% |
| Light gardening | 4% | 3% | 2% | 1% |
| In-home respite | 2% | 2% | 4% | 8% |
| Transport services | 5% | 5% | 5% | 4% |
| Allied health professionals | 1% | 1% | 1% | 1% |
| Other services provided | 4% | 7% | 8% | 7% |
Source: Australian Government Department of Health Home Care Provider Survey Analysis of Data Collected April 2020.