Thousands stranded in hospital as aged-care bed shortage worsens - Starts at 60

Thousands stranded in hospital as aged-care bed shortage worsens

Nov 20, 2025
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Australia’s hospital system is grappling with a worsening “bed-block” crisis, with more than 3,700 older Australians stuck in hospital despite being medically fit for discharge. As state and territory leaders call for urgent federal funding to expand aged-care beds and NDIS-supported accommodation, one major in-home care provider says there is a faster, more cost-effective solution: helping older Australians return to their own homes with appropriate support.

Hazel Home Care CEO Kylie Magrath says thousands of patients caught in limbo could be discharged safely if the federal government released more of its new Support at Home packages – the at-home care program that began on November 1.

“There are around 120,000 older Australians waiting to be assessed for a Support at Home package,” Magrath says. “A lot of them may well be among the patients taking up hospital beds right now who aren’t necessarily unwell but do need some help around the house. That’s where in-home care providers can step in.”

Across the country, hospitals are reporting significant strain as older patients remain admitted simply because there is nowhere else for them to go. Some states say 8–10 per cent of their public hospital beds are occupied by people waiting for aged-care placement. Health economists estimate this is costing state budgets billions each year, while also delaying surgeries and blowing out emergency department wait times.

The home-care option hospitals are overlooking

Rather than waiting for a scarce residential aged-care place, Ms Magrath says many older Australians could be discharged days or even weeks earlier if in-home support services were more readily accessible.

“I’m fairly confident that 100 per cent of these patients would prefer not to be in hospital,” she says. “Older Australians want to live in their own homes where they can access their community, stay close to family and enjoy their familiar surroundings.”

The new Support at Home program replaces the former Home Care Package (HCP) scheme, lifting the maximum funding amount from $61,440 to $78,000 per year, allowing eligible Australians to access services ranging from nursing and personal care to cleaning, gardening and transport.

The federal government says around 320,000 people on the previous HCP program will transition to Support at Home. But Ms Magrath argues that unless more packages are released – and assessments fast-tracked – thousands of older patients will remain stuck in hospitals unnecessarily.

Why this matters to older Australians and their families

For the Starts at 60 community, the issue is personal. Prolonged hospital stays can lead to:

rapid loss of mobility and independence
increased infection risk
social isolation
delayed recovery

Care advocates say many older Australians don’t realise they may be eligible to return home with funded support – and that residential aged care is not the only option.

Hazel Home Care’s message to government

Hazel Home Care is urging the Commonwealth to:

Release more Support at Home packages immediately
Fast-track assessments for the 120,000 people currently in the queue
Empower hospitals to refer patients directly to in-home care where appropriate
Support older Australians’ preference to age safely at home

“Older Australians are better off under the new scheme, and that’s the good news,” Ms Magrath says. “The key now is ensuring people can actually access it.”

As governments debate long-term solutions to the aged-care capacity crisis, Hazel Home Care says the fastest way to relieve hospital pressure is already available – send people home, with help, rather than waiting for a bed that may not exist.

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