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Capital crisis in aged care is confirmed by govt's own figures

 
7/07/2009-

The recent release of the Aged Care Approvals Round (ACAR) place allocations for 2008 reinforces the message from the aged care industry that the current system is not viable.

 
‘Aged Care Association Australia (ACAA) has grave concerns about the Government’s
decision not to address the real funding crisis impacting residential care,’ said ACAA CEO, Rod Young.

‘To ensure the allocation was fully subscribed in the 2008-09 Aged Care Approvals Round, the Government had to reduce the planned allocation of residential places by 1915 and direct these to community care,’ said Rod Young.

‘This simply demonstrates that aged care providers are voting with their cheque books and have substantially reduced their risk to future investment in aged care buildings,’ Young said.

‘It is now costing aged care providers an average of $25,000.00 per annum in servicing the cost of building a new aged care place which is now averaging $200,000.00 per place,’ said Rod Young.

‘2011 sees a very significant growth in aged care for the next 30 years. Failure to build now will mean excessive unmet demand and very long waiting lists from 2012 onwards unless Government fixes these problems with capital raising,’ said Rod Young.

 
 
 
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