Industry disputes ACAR spin
Strong competition for community care only highlights the poor viability of high care, says a senior industry figure.
The strong competition for community care places in the current Aged Care Approvals Round (ACAR) highlights the poor state of affairs in residential care, says a senior industry figure.
Over 27,000 community places were sought by providers in the latest round, although only 2,784 packages were on offer.
In contrast, figures released at the beginning of January show that residential places were undersubscribed in two states and two territories
And this is a major concern, according to the CEO of Aged and Community Services Australia, Greg Mundy.
“There is a 10:1 application ratio for community care so that side of the planning system will be fully taken up,” said Mr Mundy.
“But across the board there is a ratio of less than 2:1 for the take up of residential care. And that means that in Western Australia, Tasmania, the Northern Territory and the ACT, there are residential places that won’t be taken up.”
The Minister for Ageing, Justine Elliot said the trend towards community care showed that providers recognise that in-home care is the mode of service delivery for the future.
“It is wonderful that the aged care sector are listening and responding to the concerns and preferences of older Australians,” Mrs Elliot said.
“Older Australians are telling us they want the choice to remain in their homes and only want to enter nursing homes when it is absolutely necessary.”
But Mr Mundy said providers had been forced to boycott residential care because it is unviable under the current funding system.
He said many providers would like to apply for more of the residential places on offer but they can’t, because government funding is undermining the planning system.
“High care and community care are not necessarily substitutable and there are not enough EACH packages out there for people with high care needs,” he said.
“The fact of the matter is that some people need residential high care but the economics is stopping providers from applying for them.”
My Mundy also disputed Mrs Elliot’s claim that the level of applications for residential care remained healthy and competitive.
“It’s unhealthy because people are responding on pricing signals, not consumer preference, and they are doing that because they have no choice,” he said.
