Current funding crisis for SA rural aged care

The Yorke Peninsular Times has reported Eldercare chief executive officer, Klaus Zimmermann saying that 200 aged care facilities around Australia have either closed or amalgamated in an effort to remain viable in the last 12 months.

“There is currently an aged care funding crisis,” he is reported to have told a local meeting. 

“Current government policy is not only having a detrimental effect on Elanora but all small aged care facilities,” he said.

“The current situation is untenable. We need capital for high care beds and increases in low care subsidies. There should be no low or high care, just an aged care system with one set of rules for all.

“The funding instrument of the Department of Health and Ageing, Aged Care Funding Instrument (ACFI), has been operating for exactly 12 months and the frustration of finance managers is palpable.

“We have gone from eight-points to 64 points for assessment with a corresponding increase in non-productive labour and administration costs, not to mention the fact that we can no longer offer low care or attract adequate bonds.

“Low population base areas like Yorke Peninsula need some recognition of their plight and the rights of our residents, aged and otherwise, to have access to the same levels of care as is available in areas of higher population which are able to support viable 100 bed-plus residential aged care facilities,” he said.

Key issues revolve around an increase of 30 residents from ten years ago to 70 residents today for a break even point to ensure the viability of the smaller facilities and the current Federal Government pricing structure.

“The pricing systems must change, there is not enough daily revenue and we are losing money.

“We need a higher revenue per client and we must have access to capital,” Mr Zimmermann said.