Home care providers criticised over exit fees

When the home care changes came into effect in February, the aim was to give older Australians more choice about their care.

As you would have read, the changes meant you’d be able to change providers if you weren’t happy with the care you were receiving.

But it turns out, changing providers could come at a cost.

The CEO of home care provider KinCare has slammed home care providers, who he claims are charging as much as $4000 in exit fees for older Australians.

“The whole point of the Government’s Consumer Directed Care scheme is to deliver increased choice and flexibility, not lock-in thousands of older people into care arrangements they might not be satisfied with,” CEO Brian Bissaker said.

“The introduction of exit fees is unfair and it’s hitting our most vulnerable the hardest, at a time when they are supposed to have greater choice in selecting a care provider for the first time.”

His comments come following results from a survey commissioned by KinCare, which found that 75% of people who would be affected by the home care changes believe exit fees should be banned.

So, what exit fees could you be up for if you choose to change providers?

Well, as Pat Sparrow, the CEO of Aged and Community Services Australia explains, you’re only required to pay what is in your contract.

“The Government has allowed and regulated exit fees to cover the administration costs the provider incurs to transfer the client to another provider,” she said.

“These come out of the unused portion of the home care package.

“The average fee is about $417, and many providers are charging less than that, with several charging no fees at all.”

As Sparrow explains, home care providers are required to negotiate contracts – including fees and charges, with you.

“These costs can vary among providers based on several factors, including location,” she said.

“The vast majority of home care organisations provide affordable, quality services.”

But people affected by the exit fees say it needs to stop, and that people should be able to change home care providers without a financial penalty.

Josephine Pagano shared her story with KimCare, revealing how when she moved her elderly father’s home care package across, his previous provider charged him an exit fees.

“For a vulnerable group such as the elderly, even a $500 exit fee is too high, especially when they are on limited budgets,” she said.

“The new consumer choices for services are about being able to trial new providers and the services that suit you and your family.

“I don’t think there should be any exit fees, as you should be able to opt out if the services no longer meet your needs.”

The conversation around exit fees comes as a time when the Minister for Aged Care Ken Wyatt intends to hold a Financing Forum with the finance industry. 

What do you think? Should home care providers be allowed to charge exit fees?