Patrick Reid, the CEO of Illawarra-based aged care provider IRT, has told The SOURCE, "The clear message is that the Government’s cupboard is bare" as part of our latest political wishlist ahead of the yet-to-be-announced 2025 Federal Election.
"Simply whining for more money won’t cut it. Solutions from all parties are required to keep aged care sustainable," he said.
Patrick proposed several ideas aimed at improving sustainability in the sector.
Cutting red tape is as important as recruitment
Patrick would like to see a dedicated program to target cutting red tape. The sector is at risk of "collapsing" under "excessive reporting, compliance, and redundant processes", he said.
"Something is broken when 40–50% of a skilled health professional’s time is devoted to administrative tasks."
Freeing up these resources is as important as recruiting more staff, according to Patrick.
Shared care with retirement villages
From 2045, high rates of occupancy in residential aged care will "drastically reduce" from more than 93% to below 85% by 2050.
"To ensure place-based care remains viable, we must explore alternative models of shared care, pooled funding for retirement villages, and other innovative approaches," Patrick said.
"Health planners and the sector must factor this accelerated depreciation rate into future funding and design decisions," he said.
Tackling delayed discharge from hospital
With a strong presence on the NSW South Coast, long recognised as having a serious shortage of aged care beds, Patrick proposes several solutions to help with delayed discharge of older patients from hospital.
- Aged care operators could have Rapid-access Transitional Care Programs specifically for hospital discharges
- Expand the Transition Care Program by increasing places and expanding time frames
- Consider Restorative Step-down Units convalescence units within residential aged care facilities that operate with lower staffing requirements jointly funded by the states and the Commonwealth
- Rapid-Deployment Home Care Packages activated within 24–48 hours, supported by hospital-embedded aged care assessors who begin the process pre-discharge
- Introduce Coordinated Discharge Management, with a single-point coordinator for complex discharges, fast-track ACAT assessments for hospital patients, streamline funding approvals, digital bed availability platforms showing real-time RACF vacancies, and remote monitoring, telehealth, and ‘flying squad’ follow-up to reduce readmissions
- Expand shared electronic health records to improve cross-sector coordination
"Tangible fiscal measures" for workforce attraction and retention
Patrick proposes:
- All aged care providers, not just Not For Profits, should be exempt from payroll tax - it could free up between 4.75% and 6.85% of cash, Patrick says.
- Modernise salary packaging and FBT exemptions, for example by extending Public Benevolent Institution (PBI) benefits to all aged care workers, by simplifying administration, minimising fees, and introducing carry-forward provisions for unused exemption amounts, and by offering pro-rata benefits for part-time workers with expanded caps.
IRT reported a profit of $43.62 million in 2024, compared with a loss of $4.49 million in 2023. Revenue increased 39% reflecting high occupancy rates at retirement villages, additional aged care funding for residents with higher acuity levels, and a 9.6% increase in the number of Home Care Packages delivered. IRT helps more than 8,100 people annually, and employs more than 2,600 staff.
