Aged care reforms challenged
The prospect of elderly people getting the “right aged care at the right price”, under the Gillard government’s aged care reforms, has been challenged in a new industry report. A report by aged care industry analysis firm, Grant Thornton, questions the proposed changes.
The prospect of elderly people getting the “right aged care at the right price”, under the Gillard government’s aged care reforms, has been challenged in a new industry report.
The Sydney Morning Herald states a report by aged care industry analysis firm, Grant Thornton, questions whether the proposed changes will meet the demand for a more “consumer-friendly and financially sound” industry.
The government had failed to implement key recommendations of the Productivity Commission to transform aged care into an ‘entitlement’ system to allow funding to be allocated to individuals rather than providers.
The Grant Thornton report also stated the plan to establish the Aged Care Financing Authority (ACFA), the proposed watchdog to combat the imposition of ‘super bonds’ and unreasonably high accommodation charges, did not reflect the “true value” of the service.
The government’s plan to strip $1.6 billion from recurrent funding to nursing homes because of ‘over-claiming’ of subsidies was not based on comprehensive information on costs, and although much of that money would go to boost wage rates, that would not offset the cut in funding.
The report also raised doubts about the extent to which people would be able to stay in their own homes, even with expanded aged care support services.
It would, reportedly, not be practical or safe for many to remain in their own homes, as the elderly often required the ongoing support of spouse, children or friends. But given the composition of the baby boomer population, access to such support would decline.
