$5.5 billion aged care funding shortfall looms
Aged care faces a $5.5 billion funding shortfall in the coming years, according to research undertaken by PricewaterhouseCoopers, commissioned by the Aged Care Industry Council (ACIC).
It backs up the conclusions of the 2004 review of aged care funding, conducted by Professor Warren Hogan, which predicted a crisis in the funding of high care beds.
“This report paints a frightening scenario for the future of aged care,” the chief executive of Aged Care Association Australia and ACIC spokesman, Rod Young, says.
“The predicted funding shortfall of more than $5.5 billion between 2008-2020 will leave thousands of elderly Australians right around the country without a high care bed.
“That means more stress and anguish for older Australians and their families.”
The report, Estimation of Capital Needs for the High Care Residential Aged Care Sector, shows that to maintain the current ratio of 44 beds per 1,000 people would require a massive funding injection, based on reasonable estimates of building costs.
