Aged care reaching ‘crisis’ point

Western Australia’s not-for-profit aged care sector last week sent a clear message to the federal government following a crisis meeting organised in response to last month’s decision to cut residential aged care funding by $500million. 

Representing more than 100,000 of the state’s most frail and vulnerable citizens, members of Aged and Community Services WA (ACSWA), agreed on five resolutions which included:

• Reversing the funding cuts decision and undertaking an independent and comprehensive cost of care study to establish pricing for quality care and accommodation.
• Reversing the decision not to provide annual cost increases indexation for 2012/13 to cover wage rises and general operating increases including utility costs.
• Providing emergency assistance to the Western Australian regional, rural and remote service providers who are operating on cost neutral budgets.
• Urgently addressing the 3,368 residential aged care bed shortage in Western Australia.
• Bringing forward many of the initiatives of the Living Longer. Living Better reform package not scheduled to be introduced until mid 2014.

ACSWA chief executive, Stephen Kobelke, said the $500 million residential aged care funding cuts, introduced at the start of this financial year, would have a significant impact on the provision of aged care services across [the nation] and particularly for regional, rural and remote service providers.

“The reality is that WA’s operating environment is different to the eastern states and the federal government needs to recognise this,” he began. “Workforce shortages, building and housing costs, small communities and big distances are some of the issues involved, and in a high cost and stretched operating environment, cuts in funding are wrong.

“Indeed, many WA not-for-profit aged care providers are deeply concerned about their ability to continue to operate.”

Figures revealed by ACSWA show the federal government’s decision would mean many providers being faced with funding cuts of more than $14,000 per resident per year, particularly for elderly people receiving high care services and people suffering from dementia. 

“There is unity among our members, particularly because of the pressure they’re under,” Mr Kobelke said.

“As a consequence, residential care provision in WA is at the absolute tipping point under the current funding regime, let alone faced with major reductions in anticipated funding.”

Following the crisis meeting, ACSWA members assembled to hold a peaceful protest against the backdrop of Perth’s CBD.

“There has been no proper industry consultation, no proper thought and no understanding of the extent of the impact of this decision, and the organisations that care for the frailest West Australians are unable to stay silent,” Mr Kobelke said.

“We have no alternative but to send a very loud and clear message to Canberra that the future of residential aged care in our state is now in real jeopardy.”