The cost of building an aged care bed in regional Australia has blown out to up to $800,000, raising doubts about the impact of the Government’s $300 million Aged Care Capital Assistance Program (ACCAP).
The 10 largest grants together account for $200 million – averaging $20 million each – but that only delivers two to three dozen beds apiece. The remaining 56 grants average just $1.8 million, prompting concerns about how many new beds can realistically be delivered in rural and remote areas where need is most urgent.
“Up and running quickly”
The largest grant, worth $50.7 million, went to Southern Cross Care Queensland (SCCQ) to build a 90-bed aged care home in the NSW outback town of Broken Hill, more than 1,000km west of Sydney.
Broken Hill has faced severe aged care shortages. Last year, up to 40 older patients were stranded in the local hospital, unable to access residential care, while existing homes struggled with compliance. SCCQ stepped in, returned facilities to compliance, and reduced hospital delays to just a handful of patients. The operator has since formally assumed operations of Southern Cross Care Broken Hill.
With three homes already in the town, SCCQ is still deciding the location of its new facility, but CEO Jason Eldering told The Weekly SOURCE: “We’ll get this thing constructed and up and running really quickly.”
The group has a strong track record, having opened an $36 million, 81-bed facility in Chinchilla earlier this year, complete with a health hub, training centre and staff accommodation.
Regional costs blowing out
At number nine on the list, Boneham Aged Care Services received $9.5 million to expand its 90-bed home in Millicent on SA’s Limestone Coast, 400km southeast of Adelaide. With $2 million of its own funds, the provider will add 16 specialist dementia beds across two new pods – putting the per-bed cost at more than $700,000.
CEO Michael Filsell said quantity surveyors had priced the build at between $600,000 and $800,000 per bed. He added that the local hospital in nearby Mount Gambier, 50km away, is “constantly” looking for aged care beds, which are “100% occupied.”
Grant payments are released on a set schedule, but with costs escalating so sharply, the question is whether the return on Government investment is diminishing – and if the urgent demand for regional aged care places will soon outpace what ACCAP grants can deliver.