‘Seniors at risk’ as aged-care funding hits tipping point

Australia faces an aged care emergency in 2020 without an urgent injection of funds, Morrison government to be told.

A united front of aged care providers says the government’s funding package in response to the royal commission’s interim report is “the tip of the iceberg”. Picture: istock

Australia faces an aged care emergency in 2020 without an urgent injection of federal government funds, a united front of aged care providers will tell the Morrison government on Wednesday.

In a concerted campaign, the group will press the Prime Minister, Treasurer and the aged care minister to use the Mid Year Economic and Fiscal Outlook to address what it says is an “immediate risk to senior Australians”.

It describes the government’s recently announced funding package in response to the aged care royal commission’s interim report as “the tip of the iceberg and insufficient to support senior Australians today.”

And it warns those currently in residential aged care, or needing to move into aged care, can’t wait for the aged care royal commission’s final report due in November next year before further funding into the sector is considered.

“The fact is, without further investment, residential facilities – and associated home and community care services – will be lost in the next 12 months,” the group said in a statement.

“Industry analysis has suggested nearly 200 providers with up to 50,000 beds are operating at an unacceptably high level of financial risk.”

The group, including Aged and Community Services Australia, Anglicare Australia, Catholic Health Australia, Leading Aged Services Australia and The Aged Care Guild, represent providers across the spectrum, from large for profits to community-based and faith-based services.

ACSA CEO Pat Sparrow said an urgent funding boost was critical for those in residential aged care.

“Currently 70 per cent of residential aged care facilities in rural and regional Australia and 50 per cent in metropolitan areas are operating at a loss,” Ms Sparrow said.

“There are many providers now looking at whether they are going to be able to continue to provide care to those who need it. Our concern and focus is that these people continue to get the quality residential care the community expects and we want to deliver,” she said.

The group are pressing for an immediate injection of funding into the residential aged care workforce to support the 200,000 people currently living in aged care homes.

And despite the government’s announcement last month of an additional 10,000 home care packages, costing just under $500 million, it is calling for more funding, noting 120,000 people are still waiting for home care packages in the community.

LASA general manager policy and advocacy Tim Hicks said some residential aged care providers “only remain in business because they prioritise their social responsibility to look after their older clients over profit.”

“We are ready to have a conversation with government because older Australians deserve a system that protects them rather than the budget bottom line,” Mr Hicks said.

UnitingCare Australia national director Claerwen Little said the government should urgently consider a $10 per person per day supplement to the current funding for residential aged care residents in regional and remote Australia.

“These older Australians should not suffer in the quality of their care because of where they live, but there are a range of additional costs in regional and rural areas including workforce, travel and infrastructure,” Ms Little said.