Australian aged care industry on verge of crisis as funding shortage threatens bed numbers

A funding shortage in the aged care sector may force providers to dump up to 21,000 beds, potentially plunging the industry into crisis.

Aged Care and Community Care Providers Association’s CEO Tom Symondson made the dire warning on Nine’s Today show, while urging the Federal Government to fix the funding shortfall.

While the Royal Commission into Aged Care recommended action three years ago, Symondson said the Government had yet to act on its recommendations.

“Its number one recommendation was that we have a new Aged Care Act that would resolve the funding problems, bring in human rights for older people into legislation and a range of other things,” Symondson told Today.

“We still don’t have that piece of legislation and it should have been introduced into Parliament a couple of weeks ago, but wasn’t.”

Symonds hoped that legislation would be introduced in September so that time and money could be invested into where it was needed, as the number of older Australians entering residential care had doubled.

“That way we can reverse this really quite frightening trend, which is seeing us closing more beds than we build, despite the fact that we actually need to be building about 10,000 a year for the next 20 years,” he said.

Symonds’ warning comes after a coalition of 10 advocate organisations pleaded with the Federal Government and Opposition to work together and pass laws to protect older Australians in the aged care system.

COTA Chief Executive Officer Patricia Sparrow said it has been over three years since a Royal Commission looked into widespread abuse and neglect in aged care, yet older people were still waiting for reforms and time was running out for promises to be delivered.

“Every story heard during the commission, and the stories from the decade before, differed slightly, but the fundamental thread was a lack of dignity, respect and basic rights,” she said.

“Both parties know that the reform we need requires the underpinning of a new Aged Care Act, yet for some reason we are still waiting for the Act to be introduced and debated.

“It is now time for the Government and the Opposition to legislate rights as the bedrock of an aged care system that values and respects older people.”

CEO of Older Persons Advocacy Network (OPAN) Craig Gear stressed that “older people have waited far too long for their rights to be enshrined in legislation”.

“Without the Act passed we don’t have enhanced quality standards, we don’t have the promised increase in protections for older people, and honestly, we don’t have viable and sustainable aged care providers,” Gear said.

“There’s no doubt that when it comes to aged care in this country, business as usual is unacceptable.”

In the meantime, many older Australians suffer the consequences of the Federal Government’s inaction.

A recent report has found that nearly 64 per cent of profitable nursing homes did not meet mandatory care-minute targets, despite government funding.

From last October, measures came into effect to ensure a sector-wide average of 200 care minutes was spent with every resident per day, while a significant 40 minutes was allocated to registered nurse care.

Minimum care time standards were recommended by the Royal Commission into Aged Care Quality and Safety, which identified that staffing levels are vital to high-quality aged care.

From October 1, 2024, mandatory care minutes will increase to an average of 215 minutes of care, including 44 minutes from a registered nurse.