A new report from the Commonwealth Ombudsman has identified significant flaws in the automated algorithm used to determine funding for Australia’s aged care system, warning that the current process lacks necessary safeguards and has produced unfair outcomes for elderly residents.
Systemic Failures and Lack of Oversight
Since the algorithm's introduction, appeals against funding decisions have surged more than five-fold. Mr. Anderson’s report highlights that the department incorrectly informed assessors that algorithm outcomes could be manually adjusted, despite no legal mechanism existing to allow such changes.
Government Response and Recommendations
Of the 10 recommendations issued by the Ombudsman, the government has accepted six. Notably, the recommendation to legislate a formal human override for senior assessors was only "noted" rather than accepted. Instead, the government recently passed legislation creating an "escalation pathway" for appeals in exceptional circumstances.
While the department disputed the Ombudsman’s characterization of its testing processes, it has agreed to conduct a comprehensive review of the Aged Care Act to identify legal defects and inconsistencies. The government has also committed to public consultation regarding future amendments to the assessment process. A further review of the system is expected to be completed in the first half of next year.
