Aged care providers raise concerns over the industry’s future

Aged care providers are growing increasingly concerned about how the system will be able to provide quality care in the future given increasing costs and workforce shortages.

The concerns came to light in the Aged and Community Care Providers Association’s (ACCPA) State of the Sector survey, released on Wednesday, October 16.

While many in the sector are committed to providing quality care to their residents, 70 per cent of respondents expressed concerns about Australia’s readiness to support a growing ageing population.

ACCPA CEO Tom Symondson said the responses highlight the need for “sufficient” funding to meet demand into the future.

“These responses from providers show even more clearly that the Australian Government’s response to the Aged Care Taskforce as part of the new Aged Care Bill is essential to making the aged care sector more sustainable,” Symondson said.

The survey also found that 97 per cent of respondents were concerned about rising costs while, alarmingly, 20 per cent of smaller providers were not confident in their ability to provide aged care services in the next 12 months.

Despite the concerns, 51 per cent of those surveyed believed aged care reforms were moving the sector in the right direction.

“Providers fully support well designed reform, but that reform must be at a manageable pace and not exacerbate already existing problems,” Symondson said.

These growing concerns highlight the importance of the Federal Government’s recently announced $5.6 billion aged care reform package in addressing the sector’s challenges.

A key part of the packages includes the Support at Home program, set to launch in July 2025,  which will aim to help Australians live independently at home with assistance before entering aged care. Over the next decade, it’s estimated that 1.4 million people will benefit from the program, with the government committing $4.3 billion to its rollout.

The Support at Home program will offer essential services, including clinical care such as nursing and assistance with everyday tasks such as cleaning, showering, and dressing. Additionally, a new lifetime contribution cap of $130,000 will be introduced for non-clinical care costs.

The government will cover all clinical care expenses, while individuals will pay for non-clinical services, with fees adjusted based on income. For those in their final three months of life, the program offers up to $25,000 in support, allowing them to remain at home rather than in a hospital.

The reform package also ensures that those already in aged care facilities will not be disadvantaged, adhering to a “no-worse-off” principle that will ensure residents won’t make a greater contribution to their care. New laws will protect the rights of aged care residents, backed by a regulator with investigative powers. Providers will also have a duty to uphold a statement of rights for older Australians, with enhanced quality standards implemented across the sector.

Additionally, for every dollar a person in aged care contributes, the government will contribute an average of $3.30 to residential care and $7.80 for Support at Home.

-with AAP.