Compelling case for aged care reform

Preliminary findings from a major industry survey present a compelling case for funding and regulatory reform.

The joint survey from Aged Care Association Australia (ACAA) and Hynes Lawyers reveals that the majority of providers believe the industry is unsustainable under the current funding model.

More than 90 per cent of the survey participants said they were in favour of legislative reform.

The head of Hynes Lawyers’ health and aged care division, Julie McStay said there was a strong consensus among providers about the need for change.

“There are some pretty compelling results from the survey, particularly in relation to industry support for change to the funding arrangements, in respect to both the fees and charges,” said Ms McStay.

The CEO ACAA, Rod Young said it was close to impossible for providers to construct new facilities under the current funding arrangement.

“In order for the sector to have the ability to construct new aged care facilities, the funding model that exists under current legislation needs to change,” he said.

“If changes are not made, the future viability of the sector will become untenable.”

ACAA and Hynes will present a report on the findings to the government next month before a public release of the document on 7 July.

The report will contain a number of key recommendations, focusing on fees and charges, accreditation, the allocations round and certification.

PKF Chartered Accountants will provide a financial analysis to demonstrate that the recommendations are cost effective.

Findings from the survey will also be used in ACAA’s submission to the Productivity Commission as it conducts its review of the aged care sector.

“There is no other data, as far I’m aware, that gives such a comprehensive and up to date picture of the industry’s wants and concerns,” said Ms McStay.

“It’s fantastic timing that the survey was conducted now when the government is looking seriously at reform in aged care.”