A major aged care peak body has warned that a Federal Government funding decision could place additional pressure on providers and affect the delivery of services for older Australians, particularly in regional communities.
Catholic Health Australia (CHA), which represents not-for-profit aged care and health providers across the country, says the Government’s decision to increase the Australian National Aged Care Classification (AN-ACC) price by 2.55 per cent from October amounts to a real reduction in funding when measured against rising operating costs.
CHA Director of Aged Care Alex Lynch said the increase was below inflation and would make it more difficult for providers already facing financial pressures.
“This is a significant real-terms funding cut which further jeopardises older Australians’ access to quality, sustainable care at a time when the sector is badly struggling,” Mr Lynch said.
“Catholic providers are particularly concerned about the impact of this underfunding for regional Australia, where costs are growing beyond those in the cities.
“Many providers are already making an operating loss and this funding cut will put them in greater peril.”
Mr Lynch said providers may be forced to review planned investments and service expansions if funding levels do not keep pace with costs.
He said the decision could affect support services, workforce development initiatives and plans for new facilities or additional aged care beds.
“The funding cut undermines the new Aged Care Act, which was designed to keep older Australians safe, leaving providers unable to absorb the significant compliance, governance and administrative costs of implementation,” he said.
CHA is calling on the Federal Government to revisit the decision and work with the sector to ensure funding better reflects the actual cost of providing care.
“The Government has made significant decisions to support the aged care system, but this funding cut is a major step in the wrong direction,” Mr Lynch said.
“It goes directly against the Government’s aim to ensure Australians have access to a quality, affordable and safe aged care system and must be reconsidered.”
