Coronavirus: Aged-care operators say Scott Morrison’s $445m aid falls short

Scott Morrison has announced a $445m emergency boost to support the financially beleaguered aged-care sector.

Leading Age Services Australia chief executive Sean Rooney said the $313m allocated by the government to workforce retention and supply was critically important funding, but insufficient. Picture: Gary Ramage

Scott Morrison has announced a $445m emergency boost to support the financially beleaguered aged-care sector as it moves to protect older Australians most vulnerable to the coronavirus.

The funding, much of which is designated to shore up care worker staffing levels, fell short of industry hopes, and comes ahead of a report into the viability of the sector to be released next week that finds 56 per cent of the nat­ion’s 2700 aged-care homes operated at a loss in the December quarter, before the COVID-19 pandemic hit Australia.

This is significantly worse than the 51 per cent reported in the StewartBrown benchmarking report for the September quarter. Rural, regional and remote nursing homes are hurting even more, the new report finds, with 71 per cent running at a loss in the last half of 2019.

The Prime Minister said new funding, coming on top of a $100m package of measures announced last week, would go into nursing homes and to support those ­receiving aged-care services in their own homes.

“We are providing $444.6m of additional funding from the commonwealth to support aged-care facilities,” he said on Friday. “That includes $234.9m for a retention bonus to ensure the continuity of the workforce for staff in both residential and home care.”

Mr Morrison said the funding included $78.3m to support continuity of the workforce in residential care, and $92m to bolster the Commonwealth Home Support program, which supports services such as Meals on Wheels.

The sector response was muted. Leading Age Services Australia chief executive Sean Rooney said the $313m allocated by the government to workforce retention and supply was critically important funding, but insufficient.

“We are concerned it won’t be enough to protect the most vulnerable group of older Australians,” he said.

“We need assurance from the government that more help will be forthcoming, if necessary.

“In a sector already under significant financial distress, the impact of COVID-19 is adding significantly more financial and operational pressure on providers as they do all they can to protect older Australians in care.”

Aged and Community Services Australia chief executive Pat Sparrow said it was pleasing the government was treating aged care as a priority area, but more government support would be needed to help ailing providers.

“It’s clear that more funding will be needed than promised today,” Ms Sparrow said.

COTA Australia chief executive Ian Yates welcomed the funding announcement.

“Aged care is responsible for the wellbeing of a large group of people who are particularly vulnerable to this disease and its worst effects,” he said.

“The consequences of not having sufficient numbers of skilled aged-care workers and closing ­facilities would be fatal.

“This funding injection is one of a number of steps our government will need to take to secure the ­viability and quality of aged care if the current COVID-19 situation develops into a broader health ­crisis.”