WA provider hands back licences
Soaring construction and operational costs mean building in Mandurah is not viable, according to one of the state’s largest provider.
Rising costs have forced Western Australian provider, Bethanie Aged Care to hand back 110 bed licences to the Commonwealth.
The beds had been allocated for a proposed facility in Mandurah that had not yet been built, according to an article in the Mandurah Coastal Times.
But a combination of rising construction and operational costs meant the development would not be able to go ahead.
The CEO of Aged Care Association Australia, Anne-Marie Archer said the high costs in Mandurah were indicative of conditions throughout Western Australia.
“It’s reflective of the fact that construction costs are rising in WA and it is a clear indication that the federal funding does need to increase,” she said.
“Operational costs are skyrocketing too and the indexation on funding has not kept up with those costs.
“We have a very competitive labour market and we do not have the financial resources to attract and retain staff.”
Echoing the recent Grant Thornton aged care survey, Ms Archer warned there was serious reform, providers would continue to face similar problems.
“WA has always been in a unique position because of the mining sector but I think the rest of the states will start to catch up very soon if they haven’t already.”
