The aged care industry has joined the federal opposition in voicing concerns about the impacts of the award modernisation process.

The CEO of Aged and Community Services Australia (ACSA), Greg Mundy warned that the process would have a significant negative impact on aged care providers.

Mr Mundy said providers in rural and remote areas were already struggling to survive under the current funding formula.

“If the awards impacting on aged care currently being considered by the Commission are adopted, they will inflict inflexible and prescriptive conditions on the delivery of care and services,” he said.

Mr Mundy said many aged care services are already being run on tight margins with little room to absorb extra costs.

“Adequate resourcing is critical as we face dramatic increases in the number older Australians who will need care,” he said.

“There has been increasing recognition that older Australians want the flexibility to choose the type of care they need, whether it is in residential services or in their homes with community care.

“The same level of flexibility must be afforded service providers and aged care workers if the industry is to survive and deliver optimum care to the people who need it most, when and where they need it.

“At the very least the maximum transition period of five years will be required for implementation of the new awards.

Mr Mundy added that the award modernisation process could hinder the implementation of reforms outlined in the recent report from the National Health and Hospitals Reform Commission (NHHRC).