No New High-Care Facilities Until Funding is Overhauled: Providers

Aged care operators threw down a challenge to the Rudd Government yesterday, vowing
not to build any new high-care facilities until it lifts funding. The Queensland-based Aged
Care Alliance – which includes TriCare, Blue Care, RSL Care and Queensland Baptist Care
– argues existing funding arrangements no longer cover construction and care delivery
costs. The Aged Care Association WA is suggesting key providers there will not take up
any further allocations as well; last year, only two thirds of allocated beds were taken up
in WA. Tri Care CEO Jim Toohey said: “The current group of residents are intrinsically
more frugal and have lower expectations. The new cohort of residents coming through,
the start of the boomers, their expectations are much, much higher – they expect a big
single room, an ensuite, lots of services, lots of facilities.” He furthered: “The financial
difficulties confronting the sector have now reached the point where aged care providers
simply cannot justify the cost of construction of new high-care homes.” WA provider
Bethania Aged Care has handed back 110 bed licences and Blue Care is considering
handing back 471 licences awarded over the past three funding rounds.