Until now the Department of Health had rejected calls from peak aged care bodies and key crossbenchers including Nick Xenophon to supply the modelling behind the cuts to the Aged Care Funding Instrument (ACFI) in the May Budget.

Assistant Minister for Health and Aged Care Ken Wyatt announced the backflip last week in a meeting with the National Aged Care Alliance.

However, it’s understood the Government has told NACA while it is open to ways of adjusting ACFI, it still had to make the same $1.2 billion in savings over the next four years.

Mr Wyatt also said a three-stage consultation process with the industry including the Aged Care Sector Committee would begin next week.

It’s believed the consultation process would involve meeting with the main aged care bodies; the set-up of working groups to talk about alternatives to the cuts; and ongoing consultation through the Sector Committee on developing an independent assessment process.

If the cuts are still going to be made though, what’s the point? It’s now a case for aged care providers to find out about the cuts and start a new campaign.