The Ararat Rural City Council unanimously voted in favour of withdrawing from its agreement to deliver Commonwealth Home Support Program services at the March 29 council meeting.
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Council's decision to withdraw from the Commonwealth Home Support Program comes into effect by June 30, 2022.
The current Commonwealth Home Support Program transitions to the new Support at Home program after June 30 2023 and Council has concluded that it is in the best interests of the community that it transitions out of the service delivery function
The implemented changes would see Council not able to play a key role as a provider of services under the future 'Support from Home' program and that it is in the broader community interest that it transitions out of direct service delivery.
If Council were to continue to support the new Support from Home Program it would be required to extend its suite of programs beyond its current capacity of entry level services into home care packages, allied health, nursing and extra complex personal care.
This will then require a higher standard of support adding to extra costs for Council.
Ararat mayor Jo Armstrong said she was "satisfied" with the stakeholder collaboration and community engagement.
"There certainly is a great tradition of community care and service but I think we can see with the architecture of this new structure it is very targeted and very health focused," she said.
"I do believe we have other providers in our community who are going to be better equipped for the longer term to ensure there is a continuity of care going.
"I think the council has a very important role to play to facilitate community care, I am not convinced that we are any longer in the space that's appropriate for us to be in the space of being care providers.
"It is not a case of dropping the baby, it is a case of handing the baby over very carefully to the next set of careers effectively."
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Council also committed to working with the Commonwealth and Victorian government to negotiate timing and transition processes that will protect the interests of clients, families and staff.
In order for the transition to take place, Council pledged to work with all proposed providers including East Grampians Health Service to ensure continuity of high-quality service delivery to the community.
Council has held formal discussions with East Grampians Health to align the services being provided to build local service system capacity and improve access and outcomes for older residents.
Cr Beales believed changing providers would be a "win-win situation" for the community.
"I think the service will actually be better," he said.
"There will be one spot for people to contact, it will be well-known.
"We will save local money and we will be able to invest that locally into other services and the service provision will be much better."
Council has committed resources to support an effective transition process, this is estimated to be around $190,000 over the next 12 to 18 months.
Industrial obligations to staff in the form of redundancy payments have been incorporated into long-term financial planning.
As a result of Council transitioning out of the service an estimated $300,000 to $350,000 will no longer be able to subsidise the delivery of Commonwealth policy objectives.
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