2009-10 ACAR: under-subscriptions predicted again
The government is focusing on community care as industry leaders say residential places will be under-subscribed.
The 2009-10 Aged Care Approvals Round (ACAR) is only just about to kick off but the two national peak bodies are already predicting a repeat of the widespread under-subscriptions seen last round.
The government has announced that it will provide over 12,000 new aged care places throughout the country in the 2009-10 ACAR with more than $477 million in annual funding.
Up to $160 million in zero real interest loans and $41 million will be made available to providers through the round as well.
But both Aged Care Association Australia (ACAA) and Aged and Community Services Australia (ACSA) believe there will be a shortage of applications in residential care.
In the 2008-09 round, only 5,748 residential aged care places were handed out, despite the fact that there were 7,663 available.
“Given that nothing else has changed, we can only assume that providers are still going to be hesitant to invest, particularly for standalone high care if it is not supported by low care extra service,” said the CEO of ACAA, Rod Young.
His comments were echoed by ACSA CEO, Greg Mundy who agreed that there had been no major policy overhauls in aged care since the last round.
Mr Young said many providers were unable to consider growth plans because of capital constraints and occupancy rates around 93 per cent.
“By putting additional places out there through over-allocating for the past five or six years, an artificial occupancy situation has been created,” he said.
“This may have the impact of slowing down the industry’s preparedness to invest in the future.”
The government is focusing on its commitment to community care services in the upcoming round, with 4,078 of the 12,218 places earmarked for supporting people who live in their own homes.
“Importantly, this year there will be an additional commitment to community care places,” said the Minister for Ageing, Justine Elliot.
“These services are in high demand with older Australians, and their families, telling me that as they age they prefer to remain in their own homes and communities, close to their families and friends.
“We recognise this and to help support older Australians to remain at home the Government is providing practical assistance through community care services to help older people retain their independence.”
Advertisements for applications will appear in newspapers on Saturday 30 January, 2010. Applications will close on 15 March, 2010.
A number of information sessions will be held in capital cities and regional centres in coming weeks.
For more information about the sessions, contact the Aged Care Information Line on 1800 500 853.
