Nursing home bed licences handed back

Information obtained by the Federal opposition from the Department of Health and Ageing shows that 786 aged care licences were handed back between November 2007 and March this year.

Providers gave up 283 beds in Queensland and 224 beds in Western Australia. Large providers in both states announced last year that they were cancelling plans to make licences operational.

The Shadow Minister for Ageing, Margaret May, said the sector was on “red alert” at a time when the population is ageing significantly.

“With an average investment return of just 1.1% on a high care bed, the current lack of financial viability is prohibiting providers from increasing bed capacity,” she said.

“The Rudd Government must urgently amend the current funding mechanism to allow financial viability to return to the sector.”

However the Minister for Ageing, Justine Elliot, rejected the calls for a funding overhaul.

She said that since December 2007, 5,595 additional beds have been built.