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Why aged care providers won’t meet the care minutes demand

1 min read

With only six months until mandatory care minute targets begins to impact future residential aged care funding, the latest poll by aged care advisory firm Mirus reflects concerns about achieving the mandatory goals.

The poll, which surveyed 352 respondents from 248 aged care organisations including 30% at C- or board level, found the greatest impediment to meeting the care minute targets is lack of available staffing. 43% said it was their key challenge in meeting the targets.

Almost the same number, 41%, said management time and administrative burden was the key challenge.

Only 9% said financial constraints were their greatest hurdle, although nearly two-thirds, 62%, are not sure or disagree they will remain profitable/in surplus while complying with care minute requirements.

Source: Mirus.

Despite providers' concerns, many respondents "remain committed to working toward these [care minute] goals, highlighting the sector’s resilience and determination," Mirus said in a statement.

The latest data available from the Department of Health and Aged Care shows only 45% of aged care providers are meeting both their overall and RN care minute targets.

The Mirus survey found 58% of providers believe financial penalties will push the industry towards compliance.

In the December 2024 Mid-Year Economic Fiscal Outlook, the Government announced it would link care minute funding to the delivery of care minutes from April 2026 for non-specialised residential aged care services in metropolitan areas based on performance for the October-December 2025 quarter. 

In January, the Aged Care Quality and Safety Commission issued a statement listing 27 residential aged care homes and 11 providers hit with 'enforceable undertakings' from the regulator for failing to meet the care minute targets.