Aged care funding shortfall confirmed
Industry magazine, Aged Care Australia, has published an analysis of recent average cost of care figures in each state and territory; as estimated by the Government, then compared these with the average income received by an aged care provider, showing a shortfall between income and costs.
The chief executive officer of Aged Care Association Australia (ACAA), which represents the for profit aged care sector, Rod Young, said, “the figures highlight a serious gap in subsidies received with an average shortfall per resident per day of $10.17. That translates into an annual shortfall of $630 million across the whole industry.”
“In a 70 bed aged care facility, that is an annual reduction in income of approximately $260,000. That translates into a registered nurse and three carers who cannot be employed to support the level of service and care we already provide to frail older Australians,” said Mr Young.
“The simple reality is that under the current funding levels we cannot pay higher wages. We can only pay what the funding levels dictate,” he said.
“Many providers are now eating into their capital reserves or capital income stream to subsidise their operating income. This means providers can no longer afford to invest in new and replacement building stock that should be being planned and constructed now if we are to meet the huge growth in demand over the next 20 years,” he concluded.
