Aged care set to crumble under burgeoning costs
A new Access Economics report released by National Seniors Australia (NSA) states the aged care system must undergo urgent reform in order to meet current and future demand. Unless policy-makers implement viable funding alternatives, burgeoning costs will render the sector unsustainable.
The report, The Future of Aged Care in Australia, finds the current system is plagued by staffing and bed shortages, crumbling under current financial pressures and unable to meet the future demands of an ageing population.
NSA chief executive, Michael O’Neill, says all this spells bad news for consumers.
“Older Australians are already feeling the effects of a system in decline. In the past five years the ratio of more qualified to less qualified staff has dropped and the ratio of residents to staff has increased.
“Not only do nurses get paid $300 a week less in aged care but when the system is run as a business, cost-cutting comes in the way of staffing reductions”.
“This means consumers aren’t getting the quantity or quality of care they should. They’re waiting longer and longer for help – either in nursing home beds or at home – that just isn’t there,” he said.
“This situation is unacceptable in a country as advanced and as wealthy as Australia”.
The report comes only days after Prime Minister, Julia Gillard, announced that the “Minister for Ageing” will now be the “Minister for Mental Health and Ageing”.
“This move to a shared portfolio may reflect a downgrading of aged care just as it reaches a critical juncture. Let’s hope it’s not the case,” said Mr O’Neill.
The Productivity Commission, currently conducting an inquiry into aged care, is due to report its findings in April 2011.
“Unfortunately, reforms arising out of the inquiry will take several years to roll out. We have real stories from real people – mums and dads, and grandparents – who are in the system now and really struggling,” said Mr O’Neill.
NSA is calling for a consumer-centred approach to aged care reform; improved wages and conditions to attract skilled staff; and an effective funding model in which quality of care is paramount.
Aged care funding alternatives explored in the report include: long term care insurance; voluntary incentivised savings accounts; a voucher system; and reverse mortgages.
In a survey of 3,292 people mostly aged 50 plus, savings accounts (58%) and long term care insurance (37%) proved most popular. Reverse mortgages were least popular (18%).
