Government Announces new Aged Care Package
For some time now, Baptcare has awaited the Federal Government’s response to many of the key recommendations contained in Professor Warren Hogan’s 2004 review of pricing arrangements in aged care. The Prime Minister announced the Government’s final response to Professor Hogan’s recommendations in mid February 2007, in a package entitled “Securing the Future of Aged Care for Australians”.
The context for these reforms of course is the profound change affecting Australian society; that of a rapidly ageing population. In 2005, about 1.5% of the Australian population was aged over 85 years; by 2050, this group will represent more than 6% of the population, and over the next twenty years, the number of Australians who are 70 or over will grow more than 3.3 times faster than the growth of the total population.
Whilst our initial response to the package was generally positive, it has since become clear that it contains some matters that must be addressed.
Our supporters will know that Baptcare has been committed for some years to upgrading its residential aged care facilities to the highest standard, irrespective of their location and size. Unfortunately, the rebuild of high care – or nursing home – beds has not been economically viable. In response, Baptcare has had to cross-subsidise such investment from other sources, including by developing retirement village units and increasing accommodation bond charges to low care entrants.
Also, we seek to express our Christian commitment to those in our care by funding a significant chaplaincy component and by providing more generous staffing models than those of many other providers.
There is much that is good in the package, most particularly an increase in packaged care that allows our elderly – particularly for those requiring low-level care - to receive care in their own homes, and a continuation of funding for carer respite services for those who provide much of the support to make that possible.
However, the package does not appear adequate to address the disincentive to invest in high care facilities; the funding increases provided in the package are relatively modest and are unlikely to keep pace with increases in building and land costs. Greater funding is needed, since the increased emphasis on community aged care is likely to reduce the availability of low care bonds to cross-subsidise building costs.
In addition, a new funding instrument is to be introduced by the Government in March 2008, the effects of which are still to be fully clarified.
It is a time of continued change and challenge in aged care. We continue to strive to meet these challenges so as to be faithful to our heritage of providing excellence in Christian care to our elders – the pioneers of this society – for over sixty years. We depend on your continued support to discharge that commission.
Thank you.
Jeff Davey
Chief Executive
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