Risk in investing in aged care ‘too great’
The Aged Care Association Australia (ACAA) says that recent Government data completely vindicated the industry’s position that the risk involved in investing in aged care is now too great considering the poor returns that providers are able to achieve within the current scheme.
“The 2008 survey of the aged care industry undertaken by Department of Health and Ageing showed a more than 50% decline in the planned building work for the future,” ACAA chief executive officer, Rod Young said.
“This trend data clearly shows that the industry will be radically under supplied in residential care places and that the public policy objective of ensuring future choice for residents and their families will simply fail to materialize,” Mr Young said.
“Aged care providers have until recently, been investing up to $1.5 billion per annum in new and replacement building stock.
“The flow on effect to the broader economy has been estimated to be as much as $6 billion. It is difficult therefore to understand, in the current economic climate, why the Government would not assist the aged care industry to maximise its building work which would add to the broader impact of the economic stimulus,” said Mr Young.
“Current Government policies are going to lead to huge delays in older Australians being able to access care and services in the future. This is not how older Australians and their families should be treated,” he said.
