The CEO of the South Australian Not For Profit has warned the Federal Government that aged care providers are being “legislated to make a loss” under current reforms, in his contribution to The Weekly SOURCE’s political wishlist series ahead of the 3 May Federal Election.
Darren says while he supports the principles of the new Aged Care Act, key funding and implementation gaps are placing unsustainable pressure on providers.
Under the upcoming Support at Home reforms, due to start from 1 July 2025, most consumers will pay more for their care. This is driven by the introduction of consumer co-contributions, the removal of package management fees, and a reduced cap on care management costs – all of which are forcing providers to increase their service prices.
“The scale of these changes is significant. The Government must take the lead in educating the public on what they will be expected to pay,” Darren said.
“As public policy, it should not be left to providers alone to deliver the co-contribution message.”
He also raised concerns about the sector’s ability to be ready in time. Darren is calling on whichever party forms Government to conduct a readiness review immediately after the election to assess which aspects of the reform can realistically be implemented by the deadline – and which will require new timelines.
“Priorities must be reassessed to ensure we don’t rush the rollout at the expense of care quality,” he said.
In residential care, Darren says providers are also facing a critical funding shortfall due to increased wages and mandatory care minute targets, which were not accompanied by a full cost-of-care analysis.
“The obligation to meet care minute targets without adequate funding means many providers are effectively legislated to make a loss,” he said.
“We are currently cross-subsidising residential care from other parts of our operations just to meet the mandated standards.”
While Darren praised the commitment to better pay for aged care workers, he said funding in the latest Federal Budget was focused too heavily on regulation and review, rather than supporting providers to adapt to the new system.
“Our hopes rest with the Independent Health and Aged Care Pricing Authority to identify and address this funding gap.”
Resthaven supports around 15,000 older Australians through home and community services, and operates 12 residential aged care homes across South Australia.
Read the previous articles in our 'political wishlist' series:
Support at Home reforms must be staged: HammondCare CEO Andrew Thorburn's 'political wishlist'
Level the playing field on payroll tax: Homestyle Aged Care CEO Tim Humphries’ political wishlist
Seven years since a workforce strategy: Juniper CEO Russell Bricknell’s ‘political wishlist’
“Whining for more money won’t cut it”: IRT CEO Patrick Reid’s political wishlist
Anne McCormack CEO of mecwacare wants to see greater recognition of palliative care in aged care
