$1 billion jump in aged care spending

Spending on aged care services in Australia has jumped nearly $1 billion dollars and the number of residential beds has risen by 4,500.

An Australian Institute of Health and Welfare (AIHW) report, released yesterday (Wednesday 31 August 2011), says spending on aged care in 2009/10 climbed to $11 billion – up from $10.1 billion the previous financial year.

The federal government picks up the lion’s share of the bill, spending an estimated $7.1 billion on aged care residential services.

The institute’s report finds residential places continued to rise with more than 182,850 filled in June last year, increasing from 178,300 in 2009.

With women in residential places outnumbering men by more than two to one, the report found more than half of nursing home and hostel residents are over 85 years of age.

The report also states that seven out of 10 aged care residents had high care needs and complex health issues, and that Indigenous Australians tend to use residential and community aged care services at younger ages compared to their non-indigenous counterparts.

A second report, also released yesterday, found that supply of community aged care packages is also increasing.

“These packages provide an alternative form of care to residential aged care and are provided to recipients in their own homes,” AIHW spokesperson, Brent Diverty, said.

The report, Aged care packages in the community 2009-10, shows that between 2009 and 2010, there was a 5% increase in Community Aged Care Packages (CACP) clients, a 26% increase in Extended Aged Care at Home (EACH) clients, and a 23% increase in Extended Aged Care at Home Dementia (EACHD) clients.

The provision ratio for CACP, EACH and EACHD was 24.4 operational places per 1,000 people over 70 years of age; whereas the current planning ratio target for community aged care is 25 places per 1,000.

Most EACH and EACHD (high-care) care recipients had carers to assist with their daily needs, the majority of whom were living with the care recipient.

In early August, the Productivity Commission recommended a complete overhaul of the sector with a clear separation of charges for care and accommodation.

Prime Minister Julia Gillard has promised Labor will “start aged-care reform in this term of government”.