More money from ACFI but ACSA says gains may not be realised
The Australian Government has released Access Economics’ independent analysis of the new Aged Care Funding Instrument (ACFI) to the industry-dominated ACFI Reference Group at a meeting in Canberra.
Access Economics’ analysis, conducted on 33,000 claims, shows that on average, when fully implemented, the new Aged Care Funding Instrument will increase funding to the residential aged care sector by about 2.9% in real terms.
The ACFI is used by nursing homes and hostels to determine the level of Commonwealth subsidy payable in respect of a resident.
However, Greg Mundy, chief executive officer of Aged and Community Services Australia (ACSA), today urged caution in interpreting the figures.
“Any increase in funding to help meet the increasing needs of Australia’s ageing population is welcome,” Mr Mundy commented.
“However unless the Government takes steps to link its funding to the costs of providing care, these gains will not only be wiped out, they will be reversed.
“With inflation running at over 4% and health sector wages increasing at a rapid rate, no-one can afford to be complacent about the financial state of aged care.
“At this stage too, the 2.9% gain reported by Access is a theoretical one, because the increases are being phased in. The actual figure for 2008 would be more like 1%,” Mr Mundy stated.
The report is available on www.health.gov.au/internet/main/publishing.nsf/Content/acif_report.htm
