Mar 19, 2025

How aged care Star Ratings are changing: A deep dive

Disecting the new design changes coming to aged care Star Ratings

In the quiet corridors of Australia’s aged care homes, where the frail and elderly entrust their final years, a battle for trust and transparency has been simmering.

Since its debut in December 2022, the Star Ratings system – designed to guide families through the labyrinth of residential aged care options – has been both a beacon of hope and a source of bitter frustration. Intended as a simple, five-star scale to reflect care quality, it promised clarity but delivered confusion, earning scathing critiques for masking dire failings behind glossy ratings.

Earlier this week, the Australian Government Department of Health and Aged Care unveiled the Design Changes for Star Ratings for Residential Aged Care – Consultation Findings Summary Report, a document born from weeks of stakeholder soul-searching.

Its findings, gathered between November and December 2024, reveal a system at a crossroads, grappling with its past sins while reaching for redemption. Here are the most intriguing takeaways—glimmers of reform shadowed by the echoes of prior discontent.

Broken trust

To understand the stakes, one must first revisit the scars.

The Star Ratings system, launched in response to the Royal Commission into Aged Care Quality and Safety, was meant to distil complex care metrics – resident experience (33%), compliance (30%), staffing (22%), and quality measures (15%) – into a digestible score.

Yet, as the Commonwealth Ombudsman warned in late 2024, it often painted a falsely rosy picture. Families, like that of Rodney Reed, placed loved ones in homes like Charles Brownlow in Victoria, rated four or five stars, only to watch care crumble. Cath Reed lost seven kilos in a month, her decline linked to sepsis amid a litany of failings – yet the facility’s rating inexplicably rose post-complaint.

Elsewhere, Wallsend Aged Care in Newcastle flaunted five stars despite failing all eight accreditation standards in November 2023, a sham exposed by Dr Rodney Jilek on ABC’s 7.30 report.

The lag in updating ratings – sometimes three months – left families blindsided, relying on a system Dr Jilek branded “a joke,” propped up by “faith” that providers would self-correct. This disconnect fuelled a chorus of grievances: ratings were opaque, resident feedback skewed by staff-led surveys, and the criteria buried in dense manuals few could decipher.

Advocates decried a facade that empowered no one, least of all the vulnerable residents whose voices were muffled by fear or coercion.

The new report, informed by 271 stakeholders – older people, families, providers, and advocates – confronts these ghosts head-on, offering a blueprint that could either mend the cracks or widen them.

Judging the whole, not just the parts

Perhaps the most striking revelation is the push for systemic accountability.

A resounding 76% of survey respondents demanded that a provider’s Compliance rating drop across all its homes if slapped with a formal regulatory notice for significant or systemic non-compliance.

Imagine a chain of aged care facilities, one rotten apple exposing a barrel-wide malaise – under this proposal, no home escapes the stain. It’s a bold riposte to cases like Wallsend, where a five-star badge concealed a provider’s broader rot. Stakeholders see it as a truth serum, forcing transparency where it’s long been absent.

Yet, the devil lurks in the details. Providers, while 64% supportive, cautioned that home-specific factors—like a stellar manager or unique challenges—often outweigh corporate oversight. They urged a distinction between minor slip-ups (say, paperwork errors) and major breaches (like neglecting resident safety), lest the system punish indiscriminately. The report nods to this nuance but leaves the calibration unresolved, a tightrope walk between justice and fairness.

If implemented, this could mark a seismic shift, spotlighting the puppeteers behind the curtain – not just the stagehands – while challenging a system that’s let high ratings gloss over deep flaws.

Staffing under scrutiny

Staffing, the lifeblood of aged care, emerges as another flashpoint. The consultation found 75% backing a cap of two stars on the Staffing rating for homes failing to meet both care minute targets – hours of direct care mandated per resident. It’s a blunt signal: skimp on staff, and your rating bleeds.

This tackles a core frustration from 2024, where facilities boasted high scores despite threadbare staffing, leaving residents like Cath Reed languishing. Even more emphatic was the 87% support – 92% among older people and families – for weaving the 24/7 registered nurse requirement into the Staffing rating, with many advocating a two-star cap (or even zero) for non-compliance.

Picture a rural care home at midnight, an elderly resident gasping for help – no nurse on duty. That’s the nightmare this aims to banish, a standard deemed non-negotiable by families weary of hollow promises. Yet, rural providers cried foul: workforce shortages, not negligence, often thwart them. They begged for exemptions, transparently flagged, lest they’re crushed by urban-centric rules.

The report captures this clash – rigour versus reality – hinting at tolerance but leaving the threshold (95% compliance? 100%?) dangling. It’s a tantalising prospect: a system finally prizing boots on the ground over bureaucratic box-ticking, yet one teetering on the edge of practicality.

Data integrity: The bedrock of belief

Beneath these reforms lies a quieter, yet electrifying, thread: data integrity. Stakeholders didn’t just want new rules – they demanded the numbers be trustworthy.

The Staffing rating’s potency, they argued, hinges on accurate, reliable care minute data, especially when self-reported by providers. Flash back to 2024: Dr Jilek’s fury at a three-month lag let failing homes masquerade as exemplars, a delay stakeholders now want slashed.

Two-thirds (66%) insisted Compliance ratings rebound instantly once non-compliance is fixed, not linger in purgatory for 1–3 years – a rejection of the punitive inertia that left families like Reed’s in the lurch.

This obsession with real-time truth is no mere technicality. It’s the antidote to a system once mocked as a “facade,” where ratings drifted from reality like ships unmoored. The report’s call for transparent regulatory notices—75% want System Governor notices published, 85% demand financial non-compliance hit ratings—doubles down, promising a window into a home’s soul. But can self-reporting, prone to fudging, bear this weight?

The consultation leaves that gauntlet on the table, a test of whether the system can finally earn trust.

Empowerment or overload? The user’s dilemma

Finally, the report flirts with a design revolution: half-star ratings and richer data. A narrow 51% endorsed half-stars for the Overall Star Rating, envisioning a ladder of incremental progress – 3.5 stars as a reachable rung, not a distant five. It’s a nod to providers striving amid chaos and families craving nuance, a far cry from the blunt tool of 2024 that lumped heroes and villains together.

Yet, 38% balked, fearing it muddies waters already murky – echoing the Ombudsman’s lament of families lost in a “maze” of complexity.

Then there’s the 82% clamour to display environmental restraint data alongside restrictive practices in the Quality Measures rating. Imagine a family weighing two homes: one uses locked wards for dementia safety, another shuns them.

That detail, once buried, could sway choices, answering the 2024 plea for meaningful metrics. Providers, though, fretted over stigma – dementia specialists might look cruel without context. The solution? More explanation, less fear – a delicate dance to empower without overwhelming.

A reckoning unfinished

These takeaways paint a system straining to shed its troubled skin. The push for systemic accountability could unmask corporate culprits, staffing reforms might anchor care in reality, and data integrity could rebuild faith – all balm for wounds inflicted by a misleading past.

Yet, the report isn’t a panacea. Rural providers’ pleas, the risk of user overload, and the spectre of dodgy data loom large. The Ombudsman’s “disempowered and frustrated” families watch, as do critics like Dr Jilek, who saw political spin in every star.

Australia’s aged care sector currently stands at a precipice. The consultation’s 271 voices have spoken, their hopes and fears now in the government’s hands. Will Star Ratings become a compass families can trust, or remain a mirage? The picture is vivid – reform in bold strokes – but the final strokes are yet to dry.

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  1. The reason for the introduction of Star Ratings was to give potential clients of residential aged care the ability to choose which home they wished to enter. The reality is that a Star Ratings system works where you have an excess of supply over demand…….makes the provider do better in order to attract clients. Sadly, here in Australia, our Residential Aged Care System is now at the tipping point where demand outstrips supply, and this is already the reality in many areas of Australia. Facts to keep in mind are: most people will access aged care, either home care or residential care, from around the age of 82; currently in Australia approx. 21,000 turn 85 each year BUT in just under 7 years time the first of the Baby Boomer Generation turn 85 and that number goes to 62,000 per year. Today there are not enough beds in the system, building costs have doubled in the past 5 years making the construction of just 100 beds go to around $60 million dollars, banks will not lend as the financial return is inadequate, and if construction goes ahead, because of government red/green/blue tape it takes around 6 years to build and commission a new RACF. Numbers don’t lie, in the very near future there will be no ability to choose, there will be no incentive (except the prospect of punishment) for providers to lift their game and provide quality care to all. Some say Home Care is the answer, but it really isn’t when someone becomes non-mobile and requires constant oversight. Governments of both political parties have ignored aged care for decades, they have know that this time would come (the ageing of the Baby Boomer Generation) but they just ‘kicked the can’ down the road. Star ratings will not achieve anything, perhaps the hundreds of millions of dollars spent on this could be better used.

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