NSW rural council to opt out of aged care
Aged care facilities at Holbrook and Jindera operated by Greater Hume Shire Council will be offered for sale to professional aged care groups.
Council management will prepare an exit strategy and timeline for the offer, at the May meeting, according to a report in the Eastern Riverina Chronicle.
Greater Hume Shire Mayor, Denise Osborne, said Council sought advice in 2009 from a leading consultant in the field.
“With only 3% of local government being in this field, private companies and not-for profit organisations are better place to cope with staffing levels, changing funding arrangements and the myriad of other requirements that come with provision of aged care facilities.”
Due to cost projections, Council has already opted out of operating the Harry Jarvis Wing at Holbrook, and the Howlong aged care facility managed by council has been sold to the United Protestants Association of NSW (UPA).
A report prepared by community services manager, Ian Gilbert, looked at the projected increase in population figures for the 65 years and over age group until 2020 and Australia wide trends in providing Commonwealth accommodation funding for aged care.
The new funding formula introduced in 2008 has placed greater pressures on providers to accommodate residents with higher care needs. Higher care needs attract higher daily care fees which provide additional funding for the provider. The down side is that people who cannot stay in their home may end up in a low care home with little or no government funding.
The Commonwealth Government has also increased funding to help people stay in their homes longer.
In the next 20 years, Mr Gilbert said there were major challenges ahead for aged care accommodation and large injections of capital would be required especially at the Holbrook site.
