Getting rid of bad aged-care providers

Ailing aged-care facilities looking to close down or be sold off will be able access a new $50m fund from the federal government.

Aged Care Minister Richard Colbeck says the new aged-care Business Improvement Fund would be available for struggling outlets who needed support to upgrade their business operations to remain viable. Picture: AAP

Ailing aged-care facilities looking to close down or be sold to another provider without affecting the care of residents can access a new $50m fund announced by the federal government.

Aged Care Minister Richard Colbeck said the new aged-care Business Improvement Fund would be available for struggling outlets who needed support to upgrade their business operations to remain viable, and to those that were looking to maintain services to residents while they wound down or were sold.

“We recognise the expectation of higher quality and appropriate care for our loved ones comes at a cost and some providers need help to meet these standards,” Mr Colbeck said.

To qualify for grants, aged-care providers must have limited access to other funding sources, be in a financial position impacting on the ability to care for residents, and have a clear strategy for business improvement.

Applications open at the end of February.

The announcement was backed by peak aged-care consumer body COTA Australia, which said the extra funding would support poorer providers to walk away from the industry, enable better providers to take them over, and encourage new entrants into the sector.

“The fund is an important first step to enable residential aged-care facilities to adapt to essential changes that flow from the reforms already undertaken or committed to by the government, and the acceleration of change that will follow the final report of the aged-care royal commission,” COTA Australia chief executive Ian Yates said. “We need a nat­ional strategy to transform aged care. That will require funding but we don’t support putting taxpayer money down the drain by propping up poor quality providers.”