Qld heading for aged care crisis

Ross Smith, RSL Care CEO
Queensland could be headed for an aged care crisis after a collapse in demand for new bed licences. An analysis of new aged care data shows Queensland has received 813 fewer residential places than promised in the Federal Government’s 2009 Aged Care Approvals Round (ACAR).
Peak body Aged Care Queensland, says the shortfall is compounded by providers handing back several hundred bed licences allocated in previous years, because they can no longer afford to build the facilities.
Chief executive officer, Anton Kardash, said in a statement that Aged Care Minister Justine Elliot, had in January earmarked 2,416 residential places for Queensland. But the figures released last week showed just 1,603 places had been delivered.
Mr Kardash said the state would not have enough residential accommodation beyond 2011.
“The problem is made worse by the return of bed licences by aged care providers. While the Government does not release these figures we know of at least 500 licences that have been handed back this year alone,” he said.
“We clearly have a fundamental problem where aged care providers simply cannot afford to build new beds with the funding they are offered by the Government”.
RSL Care chief executive officer, Ross Smith, said it could cost up to $250,000 to build a single room with ensuite in a Queensland aged care home, but the commonwealth contributed only $120,000.
Mr Smith said he could understand why many aged care providers couldn’t raise the balance in the current economic circumstances, but he did not blame the global financial crisis.
“It’s really a problem that’s been looming for around five years or so. Our financial circumstances are getting worse and worse and now the shortage (in beds) is escalating,” he said.