After last year’s Royal Commission response, this year’s Federal Budget was always going to fall short on expectations for aged care providers – and despite ‘green shoots’, the sector will still need a Plan B to deliver on the Commissioners’ vision for a safe, high-quality aged care system for older Australians.
The big news from this year’s aged care funding package was the announcement of the $216.80 starting price for the Australian National Aged Care Classification (AN-ACC) model due to start in October 2023, just six months away.
This will deliver an estimated $35 per resident per day into providers’ pockets.
There is also relatively little funding to help providers transition to the new funding model – just $20.1 million – which according to COTA Chief Executive Ian Yates, indicates that Government believes most providers will be better-off financially under the new system.
But this additional funding comes with a catch – providers must meet the Royal Commission’s recommendation for 200 direct care minutes, including 40 minutes with an RN, by October next year.
This is an average figure – some residents will require more time and others less, but the takeaway is that the majority of providers are yet to meet this requirement.
Residential care operators will need to invest in expanding their greatest resource and expense – their workforce – to meet the new requirements or face the regulator and consumers over why they are not providing the set minutes.
That will require more funding – and higher wages to attract new people to the sector.
The Fair Work Commission (FWC) is set to deliver its verdict on the case for a 25% wage rise for aged care workers in July – but even a staged increase of say 5% over four years will add another $2 billion to the Government’s aged care bill.
The Government – and the taxpayer – can only fund the cost of Australia’s ageing population to a point.
There is only one solution – a Plan B to establish co-contributions for aged care and ensure that those who can afford to pay more contribute to the cost of their accommodation and everyday living, while enshrining their universal right to care and supporting those older Australians without the financial means.
We will be discussing Plan B – which was unveiled at last week’s LEADERS SUMMIT – in more detail over the coming weeks.
Watch this space.
