Commonwealth Consolidated Acts

NATIONAL HEALTH ACT 1953 - SECT 40AG

             (1)  In this section:

"approved nursing home" does not include a Government nursing home or a nursing home for disabled people.

             (2)  The Secretary shall, by written instrument, determine the standard fee for non‑classified patients in each approved nursing home in relation to a financial year.

             (3)  The Secretary:

                     (a)  shall make a determination under subsection (2) in relation to each approved nursing home to take effect at the beginning of each financial year or, where a nursing home is approved after the beginning of a financial year, shall make a determination under that subsection for that financial year as soon as practicable after the grant of approval; and

                     (b)  may make a further determination if there has been a change of circumstances sufficient to warrant the making of a further determination.

             (4)  In the determination of a scale of fees in relation to non‑classified patients in an approved nursing home for the purposes of subparagraph 40AA(6)(c)(i), the standard fee for the nursing home determined under subsection (2) shall be taken into account, in accordance with principles formulated under subsection 40AA(7), together with such other matters (if any) as the principles require.

             (5)  The standard fee for a Class 1 nursing home is the amount calculated in accordance with the formula:

             (6)  The standard fee for a Class 2 nursing home is the amount calculated in accordance with the formula:

             (7)  In this section:

                     (a)  AIA is the annual infrastructure allowance in respect of the nursing home for the financial year to which the determination relates;

                    (aa)  in relation to the financial year commencing on 1 July 1988,

                    (ab)  in relation to a financial year commencing on or after 1 July 1989, N is the amount determined by the Minister to be the daily nursing and personal care cost in relation to non‑classified patients in the nursing home for that financial year;

                     (b)  NPC is the annual nursing and personal care cost of the nursing home for that financial year determined in accordance with principles formulated under subsection 40AA(7) and on the assumption that all patients in the home are non‑classified patients;

                     (d)  in the case of a nursing home that was approved before 1 July 1988 or became a transferred home on 1 July 1987, ABD is the number obtained by multiplying the estimated daily average bed number for the nursing home for the financial year commencing on 1 July 1987 by 366;

                     (e)  in the case of a nursing home approved on or after 1 July 1988, ABD is the number obtained by multiplying the estimated daily average bed number for the nursing home for the financial year in which the home was approved by the number of days in that financial year;

                      (f)  ABE is the number obtained by multiplying the number of days in the financial year to which the determination relates by the estimated daily average bed number for the nursing home for all patients, whether classified or non‑classified, for that financial year; and

                     (g)  SAM is the standard infrastructure allowance per occupied bed per day.

             (8)  For the purposes of subsection (7), the annual infrastructure allowance in respect of a nursing home for a financial year is the amount calculated in accordance with the formula:

"SAM" has the same meaning as in subsection (7);

"A" is:

                     (a)  in respect of a financial year commencing on or before 1 July 1990, the factor declared by the Minister, by written notice, to be the component A for the purposes of this subsection in respect of that year;

                     (b)  in respect of a financial year commencing on or after 1 July 1991, the factor 1;

"ABD" has the same meaning as in subsection (7);

"AAC" is the assessed annual infrastructure cost of the nursing home; and

"B" is:

                     (a)  in respect of a financial year commencing on or before 1 July 1990, the factor declared by the Minister, by written notice, to be the component B for the purposes of this subsection in respect of that year;

                     (b)  in respect of a financial year commencing on or after 1 July 1991, the factor 0.

             (9)  A determination by the Minister for the purpose of paragraph (7)(ab) shall be made in accordance with any principles declared in writing by the Minister for the purpose of that paragraph.

           (10)  The Secretary must not make a determination under subsection (2) in relation to a financial year that commences on or after the day on which the Aged Care Act 1997 (other than Division 1 of that Act) commences.