Did you know there is now almost $20 billion held in RADs/bonds by residential aged care providers?
According to figures released by the Aged Care Financing Authority (ACFA) at the LASA Conference recently, there was an increase of $3.3billion from the totals held when the new rules started on 1 July 2014.
The totals are only going to increase as the average RAD increases and all new residents can be asked to pay RADs. Under the old rules only low-care or extra-service residents could be asked to pay bonds. It is estimated that a third of all current residents have entered under the new rules while the remaining two-thirds are still under the old rules. A large percentage of those pre-2014 residents would be in high care.
This increase in RADs/bonds held means providers can expect extra scrutiny to ensure they are meeting prudential requirements with managing these funds.