Catholic Health Australia has urged the Albanese Government to shift residential aged care from a “rationed model” to a “demand-driven system”. Source: The Weekly Source.
CHA said the Government’s Residential Aged Care Accommodation Pricing Review must consider funding in this broader context of access and supply.
CHA is on the frontline of aged care bed shortages. Around half its residents are in government-supported places, many in thin markets where there are no other operators.
In its submission, CHA warns the accommodation supplement gap – now about $90 per day between supported and non-supported residents – is eroding financial sustainability and limiting investment in new builds and refurbishments.
Over the past two years, financial institutions have taken a “more cautious” approach to aged care lending, further constraining new developments.
CHA’s 19 recommendations to the review include:
Establishing a floor for the Maximum Permissible Interest Rate (MPIR) to make it more predictable;
Increasing the Accommodation Supplement by at least half the current funding gap (about $45 per supported resident per day) as an interim uplift for Not For Profits with a high proportion of supported residents;
Conducting regular benchmarking of accommodation costs so supplements reflect real build and refurbishment costs; and
Developing an accommodation quality and pricing framework that links published room prices to defined accommodation standards.
In an opinion piece accompanying the submission, CHA Director of Aged and Community Care Alex Lynch said the goal is to give lenders and aged care operators the confidence to “renew ageing buildings and expand supply” – particularly for supported residents in regional, rural and remote areas.
“There is not – and should not be – a push to make every aged care facility a gold-plated, luxury offering. The core issue is ensuring that all older Australians have access to safe, modern, age-appropriate accommodation,” he writes. “This is not achievable with the current policy settings.”
FULL STORY
“It’s not about gold-plated luxury”: CHA on fixing aged care accommodation (By Caroline Egan, The Weekly Source)
