About 500 clients across Corangamite Shire will need a new provider when the council pulls its in-home aged care services in July this year.
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The decision was made following a six-month independent review in response to the federal government's aged care reforms following the Quality and Safety Royal Commission in 2018.
Mayor Ruth Gstrein said the government had developed a new model of care, called Support at Home, which had an expected start date of July 1, 2024.
It would replace the Commonwealth Home Support Program - the subsidised service for clients over the age of 65, or 50 for Aboriginal or Torres Strait Islander clients - as well as home care packages and short-term restorative care.
"It was certainly not an easy decision for council to make, but it needed to be made due to such transformational federal reforms," she said.
"We also recognise that the new service being developed by the Commonwealth and the much-needed reforms are best delivered by specialist providers - a sector that has grown considerably over the last decade.
"The open market will provide much greater choice for clients and council will look at delivering alternative programs to support its residents.
"We understand this has been a really challenging time for our wonderful staff and clients who have been with us for many years."
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Councils commonly provide in-home services on behalf of the federal and state governments but in recent times many in rural and regional Victoria have announced their intention to exit.
That includes Golden Plains, Moorabool, Mildura, Greater Shepparton, Bendigo, Ballarat, Hepburn and Campaspe.
Corangamite Shire Council's home support services help seniors, people with disabilities and those recovering from short-term acute care in Camperdown, Terang, Derrinallum, Lismore, Skipton and surrounds to live independently in the community.
Cr Gstrein said the organisation would assist those residents through referrals and links.
"At this stage, staff and clients do not need to do anything and services will continue," she said.
"Importantly, no client will be left without a service.
"...Council will continue to support our ageing population by helping connect residents to the services they need and to develop active ageing programs in the future.
"This approach will benefit a larger number of residents in the community."
The council's website states the federal and state governments will choose the new provider.
It also states the year-long interim period would account for the time and resources needed and leave a sufficient lead time for service providers.
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