Understanding the determining factors of aged care accommodation payment choices

In many countries LTC providers rely on government contributions to fund capital expenditure. Providers in the US, the UK and Canada mostly rely on debt and equity sourced from financial markets. Australia has a unique financing approach to LTC capital expenditure. Aged care residents can choose to pay a lump sum to providers, known as a refundable accommodation deposit (RAD), with the accommodation payment returned to the resident or estate on leaving care. Alternatively, residents can pay for their accommodation using a daily accommodation payment (DAP) that acts like a rent, or by choosing to pay any combination of RAD and DAP.