Bed shortage “quite possible” within seven years
Aged care providers are struggling to access funding for new facilities, according to a new survey.
Providers are struggling to access funding for infrastructure development and this could lead to a shortfall of aged care places in five to seven years, according to a report from Deloitte Private.
The finding is based on a survey of about 700 facilities which was commissioned by Aged Care Association Australia (ACAA).
According to Deloitte Private Partner, Mark Allen, the industry is struggling to keep up with the growing demand for high care places.
“From an economic point of view, with the increasing demand and stagnant supply it is quite possible that within seven years there could be a shortfall of beds,” he said.
“There is a lack of impetus for providers to get in and build and that is directly correlated to the difficulties in accessing funding.”
Mr Allen added that in the longer term, the industry needs a new funding base.
“As we look ahead for the next 20 to 30 years, there is going to be significant growth in the ageing population and an alternate funding method is required for providers, with less reliance on the federal government for funding aged care.”
The report recommends that the government should provide further incentives to aged care providers who are looking to build.
Mr Allen suggested that not-for-profit providers could be given pro rata cash contributions for investment in aged care infrastructure, while for-profit providers could receive tax breaks in the form of incentive allowances.
He also said the government should consider introducing additional superannuation contributions which would be earmarked for funding aged care needs.
ACAA CEO, Rod Young said the report confirmed the industry’s concerns about capital investment in the sector.
“What we are after now is some recognition from the government that what the industry has been saying for some time is being confirmed by this substantial survey,” he said.
“There are things that the government could do in the short term to address some of these issues without having to wait for the outcomes of the Productivity Commission’s review, which is a year off at least.”
The short-term measures proposed by Mr Young include a removal of the distinction between high and low levels of residential care and a lifting of the $26.88 cap on daily accommodation charges.
