The survey is designed to provide insights into market pricing expectations in light of the postponed implementation of the Support at Home model.
In preparation for the 1st of November, the aged care financial benchmarking service StewartBrown has released the Support at Home Price Survey Sector Report.
This survey, which encompasses data from 82 providers and covers 95,000 home care packages, was carried out in early August with the aim of understanding the pricing levels that would have been applicable for the originally scheduled 1 July 2025 implementation date of the SaH program.
However, 80 percent of the respondents to the survey indicated that they will, or may, adjust their pricing before 1 November. This is primarily due to increases in staff wages, the need to recover care management costs, additional compliance and administrative expenses, as well as transition costs.
Providers must be ‘mindful’ of their pricing strategies.
During the survey, StewartBrown collected 45 price lists from 82 respondents. Among these 45 lists, 47 percent indicated that shorter visits were priced at a higher effective hourly rate, while 20 percent had distinct pricing for follow-up or routine visits. This highlights the necessity for providers to recoup costs associated with report writing and assessments, as well as the time spent in direct interaction with clients.
The price lists indicate a notable change in pricing strategies, moving away from merely passing through costs. This suggests that most providers have established a fixed price for services, which remains constant regardless of whether the service is delivered by an external organization or internally. Only 24 percent of the price lists did not include pricing for contracted services.
Services that were not explicitly listed – including specialized programs that could be categorized as services but were instead listed separately – appeared in 18 percent of the price lists. StewartBrown has emphasized that providers must be aware that they can only charge for services that are included in the service list and for which the participant has received approval.
Additionally, providers have been presenting separate prices for care management and clinical care management, despite there being only one service type listed.
Variations in pricing based on the location or method of service delivery were noted in 27 percent of the received lists, including services delivered at home, in a clinic, or via telehealth.
Clinical services continue to be the most expensive, yet StewartBrown’s survey revealed higher prices compared to the indicative pricing survey conducted by the Department of Health, Disability and Ageing. The highest rates were for psychologists, at $240 per hour and $228 per hour, respectively.
In the Support at Home Price Survey Sector Report, StewartBrown highlighted that the survey for the indicative price list, conducted by the department, involved a different sample of providers and advised caution regarding direct comparisons.
Additionally, changes were observed in the pricing of personal care and domestic assistance, which StewartBrown noted has traditionally been offered at a uniform price, as these services can be bundled into a single visit and performed by the same staff member. The survey medians now indicate a slight disparity between personal care and services classified as everyday living.
StewartBrown proposed that this discrepancy arises because providers perceive the independence category as requiring a 5 percent co-contribution, while everyday living is seen as necessitating a 17.5 percent co-contribution.
Other findings
Regarding transport services, the StewartBrown survey revealed that the average price per trip was $105, with 36 percent of survey participants stating they would charge for transport time based on trip length or a combination of distance and time. Only 10 percent indicated that they would calculate it using time-based increments.
In terms of software utilization, AlayaCare emerged as the most widely adopted platform, significantly outpacing the next two platforms, The Lookout Way and Sandwai. Providers utilizing multiple systems had each software system counted individually.
StewartBrown has urged the Independent Hospital and Aged Care Pricing Authority, along with the department, to ensure that they do not hinder provider innovation in service delivery once the price caps are implemented on 1 July 2026.
As senior partner Grant Corderoy stated in July, StewartBrown reiterated that the rationale behind price increases is attributed to policy changes rather than a desire from providers to substantially elevate their pricing.
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