Huge demand for aged care as ACAR announced
More than 17,500 new aged care places have been delivered across Australia, reportedly worth an estimated $833 million, following the conclusion of the 2014 Aged Care Approvals Round (ACAR).
Assistant Minister for Social Services, Senator Mitch Fifield, has announced more than 17,500 new aged care places to be delivered across Australia following the conclusion of the 2014 ACAR.
The funding is expected to help meet demand for residential aged care across the country, and support people to stay in their own home for longer.
The latest funding round saw a huge demand from residential aged care providers.
It was a highly competitive round, demonstrating renewed interest in aged care, following recent changes aimed at supporting service viability, reducing their compliance burden and increasing business flexibility.
It was reportedly the highest number of residential aged care places sought through an ACAR since 2007, with Opal Aged Care (formerly Domain Principal Group) and Thompson Health Care securing the majority of the residential aged care places.
Older Australians will benefit from 11,196 new residential aged care places worth an estimated $660.5 million in annual recurrent funding.
A further 6,653 new home care places, worth an estimated $173.1 million in annual recurrent funding, will help older Australians remain living in their own home for as long as possible.
This is an increase from the 5,835 home care places allocated last year, and will contribute to the government’s commitment to increasing the number of home care packages from about 66,000 to about 100,000 nationally by 2017.
New or existing providers have also been allocated $103 million in capital grants to help them establish new services or upgrade their facilities.
The ACAR will also have a significant impact supporting people with dementia, with an additional 1,131 residential aged care places and 200 home care places dedicated to clients living with dementia.
The ACAR is the process that allocates funding for new government residential aged care and home care places and for capital grants each year.
However, Patrick Reid, chief executive of aged care body, Leading Age Services Australia, claims while LASA welcomes the increase in both residential and particularly homecare places; the industry needs to “put this into perspective” and understand for every winner of a place there were “16 losers where demand has been demonstrated and is required to care for older Australians”.
“Although 11,196 residential places have been allocated, this is the first ACAR since 2012/13 and is actually a net reduction in real terms. There can be no further delays in ACAR as the same large increase in places will need to be repeated every year for the next 10 years in order to get close to meeting the demand for age services,” he says.
LASA understands that Assistant Minister for Social Services, Senator Mitch Fifield, has flagged his support for reforming the ACAR process.
“LASA supports reformation of the ACAR process to deliver greater access and equity in the distribution of both residential and homecare places and particularly a far more streamlined process to remove what is currently an arduous task for age service providers,” Mr Reid says.
“Anecdotal evidence suggests there is oversupply in some regions and under supply in others, so the process of allocation against demand needs urgent review.”
LASA claims it is committed to a partnership model with government that sees a “co-design approach” to every aspect of age services including the modelling to meet demand.
“With a high reliance on government funding and a critical need for private capital for infrastructure and services we will simply not meet our social obligations to appropriately care for older Australians unless we enter into a genuine partnership.”
Another peak aged care body, Aged and Community Services Australia (ACSA) describes today’s ACAR as a “huge demand” from aged care providers to increase the delivery of aged care services in both home and residential care and shows the significantly increasing demand for community services for frail older Australians.
Department of Social Services (DSS) received applications for 19,169 new residential places in respect of the 9,330 places advertised. This represents about two new places being sought for every place initially advertised.
“Because of the increased demand for aged care places an additional 1,866 residential aged care places have been created for allocation, making a total of 11,196 new residential places being allocated, and this is a very welcome development,” says ACSA chief executive, Adjunct Professor John Kelly.
“However, the allocation of 6,653 home care places in relation to 108,281 places being applied for indicates the significantly increasing demand for people to remain in their own home and receive care services,” he adds.
ACSA aims to continue to raise the demand for home care with the government and DSS to “ensure the care that people want is available into the future”.
Standout Residential Aged Care places allocations and Capital grants include:
Opal Aged Care – 946 places
Thompson Health Care – 466 places
Moran Australia (Residential Aged Care) – 407 places
Bupa Care Services – 249 places
Heritage Care – 220 places
Anglican Retirement Villages – 162 places
Ozcare – 161 places
Standout Home Care places allocations include:
Aged Care & Housing Group – 181 places
Annecto – 132 places
Find out more details of ACAR 2014.
