The Federal Minister for Health and Aged Care says operators are ready to start building “thousands” of new aged care beds – the reality is likely to be quite different.
As we report in this issue, Mark Butler was bailed up on ABC Radio yesterday morning over the Government’s aged care reforms where he acknowledged the need to build “many thousands” more beds.
The Minister said he has heard from a number of providers saying they are prepared to build new beds; they have DA approval but the banks wouldn’t release the finance until they heard the announcement.
But will the Government’s Taskforce response be enough to reverse Australia’s aged care bed fortunes?
The short answer is no.
1,765 beds closed in 15 months
The Department of Health and Aged Care tells us only 28 new aged care homes with approximately 3,200 operational places were added between 1 May 2023 – when the Aged Care Taskforce was established – and 12 September 2024 – the date the reforms were announced.
But Australia saw 33 services – with around 1,765 places – close during the same period.
That is a net 1,435 new beds in just 15 months.
Based on our back-of-envelope calculations, over 100,000 Australians have turned 80 in this time – that’s around 70 people for every new bed.
The maths doesn’t add up.
Staffing holding back new beds
Talking to CEOs this week, operators are certainly looking at the business case for new developments.
But the fact is only those operators with DA approvals in place will be able to move quickly on projects.
Otherwise, it is at least a five-year journey – if providers are prepared to embark on new beds.
For many operators, the issue of staffing new beds, particularly in regional areas, means the business case to build is unlikely to stack up – even with the new reforms.
“Without addressing staffing, I don’t think you will see the investment needed to get regional aged care onto a sustainable, longer-term footing,” Duncan McKimm, the CEO of stand-alone operator Clarence Village in Grafton told SATURDAY.
More on this issue in our special Aged Care Reform issue of SATURDAY, out Friday, 27 September – subscribe here now. There is nothing like SATURDAY.
