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23rd September 2018

Welsh Government issues toolkit to establish cost of care homes for older people

Welsh Government has published its much awaited toolkit for setting care fees 'Lets Agree to Agree' - Toolkit for Commissioners and Providers to Agree Costs of Residential Care for Older People 

This is good practice guidance from Welsh Government and sets out a framework for discussing fees. 

We would draw a few key points from the principles to your attention:

  • An agreed price has to be negotiated as with any other contract. This requires both parties to come to a shared view on the price and the components that make up the price – neither party can or should impose a price on the other without this negotiation.
  • That negotiation requires providers to be open about their costs.
  • There can always be exceptions e.g. the greater cost of providing needed care in a rural area can be recognised.
  • Return on investment is of fundamental importance for the future of the care market in Wales.
  • The basis of this toolkit is that commissioners in the public sector should expect to pay a fair and reasonable price for care. It should not be the case that those who are funding their own care are expected to subsidise those who are paid for from the public purse.
  • For those who want additional services or a higher standard of accommodation a “topup” payment may be required that the public purse would not expect to fund. 

The toolkit recommends establishing a standing committee of stakeholders to consider the issues arising from the cost of care.

The use of the toolkit will be monitored by the National Commissioning Board reporting to the Welsh Government Care Homes Steering Group but we are keen to hear any initial feedback from members.

 If you have any queries about this please contact Mary Wimbury

/uploads/FINAL AH Letter to Commissioners & Providers Issuing Cost of Res Care Toolkit - Sept 2018 PDF.pdf

/uploads/FINAL-Lets Agree to Agree-Toolkit for Commissioners & Providers to Agree Cost of Res Care for Older People-Aug 2018 PDF.pdf

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