Outrage over flaw that may encourage Australia’s aged care homes to select residents based on profit margin

Under the Australian National Aged Care Classification funding model, subsidies paid to providers are determined by the care needs of each resident. Photograph: Rex Features

The federal government must urgently address an unintended consequence of its aged care funding model which could lead to providers avoiding residents most in need of care, an advocacy group warns.

The warning comes as the funding model’s lead designer accused some aged care providers and consultancy firms of trying to exploit the system for financial gain, and amid concern from the Greens of residents being treated as “commodities”.