Aged care operators from around the country say the recommendations from the Aged Care Taskforce are needed urgently to provide not only certainty for forward planning, but also to ensure the future financial sustainability of the sector.
Last week, The Australian reported that aged care will not be a major feature of the Federal Budget tomorrow night, confirming industry's concerns that recent silence from the Aged Care Minister Anika Wells could signal a lack of progress. The article said the Government is still finalising its position on a range of factors and working on gaining bipartisan support.
Planning is problematic
"Planning for both short and long term is increasingly problematic, given the delays in communication, and decision making, by the Government," Alasdair Croydon, CEO of standalone provider Holy Family Services in Marayong, 32km north west of the Sydney CBD, told The SOURCE.
Government must urgently enact reforms
Catholic Health Australia (CHA), which represents more than 350 aged care facilities, or 12% of all aged care facilities in Australia, and around 20% of home care services, said the Taskforce's recommendations, particularly around increased consumer contributions, are necessary for the sector's financial sustainability.
“With most aged care facilities running at a loss, the Government must urgently enact funding reforms to ensure older Australians have access to the quality care they deserve,” said CHA CEO Jason Kara.
“This is especially important for Australians in regional towns and remote areas where limited aged care services are under severe financial pressure and at risk of closing down.
“Since the Aged Care Taskforce handed down its recommendations six months ago, aged care providers have been kept in the dark about how the government will respond. We urge the government to end this uncertainty and swiftly adopt the recommendations.”
Taskforce recommendations do not require legislation
Stuart Hutcheon, Managing Partner of aged care accountants StewartBrown, said the Taskforce recommendations do not necessarily need to be part of the Budget.
"The Government is clearly in the process of negotiating a bipartisan approach to the Taskforce recommendations, and in particular those around increased consumer contributions for the everyday living and accommodation services for residential aged care," said Stuart.
"Whilst the funding for aged care services including consumer contributions forms an important part of the new Aged Care Act, it does not need to wait until the new Act is legislated for the Taskforce recommendations to be implemented.
"Some are budgetary measures, and those relating to consumer contributions can be introduced without major legislation changes."
Watch for Government's intentions
Tom Symondson, CEO of the aged care sector's peak body, Aged & Community Care Providers Association (ACCPA), is cautiously optimistic.
There may be some "sign-posting" in the Budget about the new Aged Care Act or the Government’s response to the Aged Care Taskforce recommendations but it will be "difficult to put precise figures to these reforms until they are finalised,” he said.
“Reform for the funding crisis is linked to the broader reform associated with the new Aged Care Act and can only be solved by long-term structural changes, enshrined in legislation."
Act will require 6-12 months to implement
Linda Feldt, CEO of Adelaide-based aged care provider ACH Group, has been lobbying with ACCPA for a six to 12-month transition from when the new laws take effect to provide time for providers and consumers to understand and implement change,
"The development of the Aged Care Taskforce recommendations has been a significant and complex body of work in which ACH Group has engaged," said Linda.
"Cannot be rushed"
Some in the sector, including Jason Binder, CEO of Respect Aged Care, applauded the Government's refusal to rush the reforms.
"The New Aged Care Act was delayed because we wanted to get it right, so it would be just as reasonable to say the same thing about the taskforce recommendations," said Jason Binder, CEO Respect Aged Care.
"They are a crucial piece of the aged care puzzle and must be put in place, but they also cannot be rushed in."
